SEATTLE, February 13, 2025–(BUSINESS WIRE)–(NASDAQ: RDFN) — Homebuyers have the most options since 2020, but few are biting because rising housing costs have made monthly payments tough to swallow. That is according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.
Pending home sales in January fell to the lowest level on record aside from the start of the pandemic. They dropped 4.2% month over month—the largest decline on a seasonally adjusted basis since August 2023—and 6.3% year over year.
Meanwhile, active listings of homes for sale rose to the highest level since early in the pandemic. They climbed 0.3% month over month on a seasonally adjusted basis in January and 12.9% year over year. New listings hit the highest level since July 2022, increasing 1.9% month over month and 4.7% year over year. . . .
Asking price, required payment, reduced purchasing power… Most likely a symptom of how much buying power has been lost, with adjustments to valuations lagging behind.
The Fed is still dinkering with LT rates, keeping them artificially,
(just not to the great degree as in the past.)
interest-rate control
rent control
gas price control
none of them work out very well in the long run.
so if there is a glut in housing. why arent prices coming down.
Allan
1 Sellers aren’t panicking yet
2 The Fed is still dinkering with rates keeping rates artificially low and home prices artificially high
(It’s just dinkering less than it used to.)
There is no glut in housing.
yes there is, more supply than demand at the current price.
i will modify my statement, there is a glut of high priced housing.
Allan
On a Y-o-Y basis we could say we are in a housing glut.
Active listings are up 12.9% in 12 months and in some states up 25-40%.
Yikes!
One-year map:
Long-term picture?
Not so much. We are still stuck in the mess the Fed created
Five-year (pre-pandemic) map
at current price…
It’s over inflated land prices that’s being propped up by regulations etc.
Government:
“Wait! We can fix this. We just need to subsidize more loans for more high-risk borrowers.”
It worked last time, right?
My neighbor to my right is selling his house for 690k. He bought it in 2000 for 150k. I am very interested in seeing what he sells it for. Prices around me in NJ aren’t dropping yet.
