Buyer Fatigue

Redfin notes June Home Prices Rose 5.7% Year Over Year; Smallest Increase Since December 2016. The key point is buyer fatigue.

“The affordability crisis may have reached a breaking point in Portland, San Jose and Seattle,” said Redfin CEO Glenn Kelman. “After 75 straight months of price increases in these markets that far outpaced wage growth, homebuyers are now becoming selective about which homes to buy, and at what price. The homes that did sell in June still sold quickly, but buyers were significantly more likely to reject homes that were less desirable or aggressively priced by the seller: the percentage of listings in these markets that sold within two weeks declined in June from 61 percent to 52 percent, and the fraction of listings that dropped their price increased from 31 percent to 33 percent.”

“We’ve seen similar signs of buyer fatigue in the past, especially at this point in the season,” Kelman continued. “But in this case the lull has lasted a bit longer and affected more markets than in the recent past. It’ll be interesting to see whether buyers adjust to the latest price increase and come back in force this fall, or if instead we see these markets shift more in favor of buyers.”

RECOMMENDED ARTICLES

Related Articles

  1. Apartment Construction in 2018 Expected to Decline 11% After Strong 6-Year Run
  2. Existing Home Sales Decline Third Month Despite Rising Inventory
  3. Real Hourly Earnings Decline YoY for Production Workers, Flat for All Employees
  4. Housing Starts Unexpectedly Plunge 12.3% in June, Permits Down 2.2%

Once again, signs are adding up that housing has peaked this cycle.

Mike "Mish" Shedlock

Housing Collapse Coming Right Up

Mortgage rates are high and rising. Refinancing opportunities are nonexistent; home affordability has collapsed.

Millennials Lead the Way in Housing Trends

Millennials have had a big change this decade on home ownership rates. Let's investigate why, in pictures.

Another Half-Point Fed Cut Priced In

The market expects another half-point cut on March 18 and so do I.

Global Pension Gap Expected to Hit $400 Trillion: US Leads the Way

The global pension gap of 8 nations is $70 trillion. The US alone is $38 trillion. By 2050 the total gap will hit $400T.

Australia's House of Cards is Collapsing: Recession Coming Up

Australia's housing collapse is now in full swing. A recession will follow shortly.

Japan’s Negative-Yield, Inverted Bond Market Close to Breaking Point

Japan’s dysfunctional bond market is not only inverted between three month and eight years, it also sports negative yields out to 10 years.

Housing Permits a Leading Indicator? Of What?

Based on permits, Econoday called today's housing report "very solid". Let's investigate the claim with pictures.

Housing Bounce: Prices Surge to New Record

New home sales bounced this month towards the top end of the Econoday range of estimates.

Retail Apocalypse? Deflationary Collapse?

Through the third quarter, 6,752 locations were scheduled to shutter in the US according to the International Council of Shopping Centers. That's more than double the 2016 total and is close to surpassing the all-time high of 6,900 in 2008, during the depths of the financial crisis.