Redfin economists say they expect the cooldown in budgets to lead to a cooldown in price growth over the next few months.
The shift comes at a great cost as rising mortgage rates continue to keep buyers out of the market.
While rising interest rates may lead to more reductions in the housing supply, it may also bring some much-needed balance to the market.
December housing sales fell lower than they have since the start of the pandemic, a new Redfin report found.
“Fewer homes are selling because of a lack of supply, while demand remains strong.” — Redfin chief economist Daryl Fairweather
While real estate markets across the country slowed down in November around Thanksgiving, such was not the case for Washington, where buyers and sellers were unusually active. Based on the latest report from the Northwest Multiple Listing Service (MLS), numbers for new listings, pending sales and closed sales were comparable to year-ago totals, while prices rose just over 15%.
As more money is being spent on real estate than ever before, the booming market is on pace to shatter records this year, according to a recent CoreLogic report.
Nationally, investors bought a record 18% of homes sold in the third quarter of this year, and they are increasingly turning to single-family homes, according to Redfin.
Home prices in Seattle saw little change from August to September, an indication of a seasonal slowdown in the local market. Earlier this year, Seattle-area home prices saw month-to-month increases between 3-5%, according to the latest S&P CoreLogic Case-Shiller Home Price Index.
The demand for housing in the U.S. has reached a new all-time high since 2017, a rare occurrence for this time of year when the market typically slows. According to a Redfin report, a recovering economy and all-time low mortgage rates are critical factors in the current market.