Affordable Housing Supply Sees Record Gain When Mortgage Forbearance Ends


SEATTLE, November 3, 2021 / PRNewswire / – (NASDAQ: RDFN) – The supply of America’s most affordable homes for sale jumped a record 13% year-on-year in the third quarter as mortgage forbearance programs ended, prompting many low-cost homeowners to put their properties on the market, according to a new report by Redfin (redfin.com), technology-based real estate brokerage.

Redfin’s analysis divides all U.S. residential properties into five price points – most affordable, most affordable, mid-priced, expensive, and luxurious – based on Redfin’s home market value estimates. When Redfin refers to a “record” in this press release, the record dates back to 2013. Data cited covers rolling three-month periods, the most recent of which is the quarter ending September 30, 2021, or the third trimester.

The supply of homes for sale in the affordable price bracket also increased at a record pace, increasing 1.6% year-on-year in the third quarter. At the same time, the supply of housing in the other three segments fell, with the number of luxury and expensive housing in the market dropping from a record 21.2% and a record 17.9% respectively. .

Summary of the US housing market by price category, third quarter 2021


The most affordable

Affordable

Price middle

Dear

Luxury

Number of houses for sale (AKA active ads or offer), year-on-year change

13%

1.6%

-10.1%

-17.9%

-21.2%

New announcements, change from year to year

32.3%

16.2%

1.5%

-3.9%

-4.3%

Houses sold, change from year to year

18.5%

11.6%

3.9%

-3.4%

-7%

Median selling price

$ 126,500

$ 210,000

$ 300,000

$ 460,000

$ 990,000

Median selling price, year-on-year change

17.1%

16.7%

17.6%

15.9%

17.2%

Median days on the market

24 (-13 days year-on-year)

18 (-11 days year-on-year)

16 (-12 days YoY)

19 (-17 days year-on-year)

30 (-30 days year-on-year)

“The end of forbearance has forced many low-income Americans to put their homes up for sale and become tenants,” said Redfin’s chief economist. Daryl Nice weather. “This has increased the number of affordable housing on the market, helping to replenish stocks amid an acute housing shortage. It’s a rainstorm after a long drought, but the drought is not over yet. “

The supply of housing in the most affordable and affordable price brackets remains below historic levels despite the recent record increase. There were 78,000 active listings in the most affordable tier during the third quarter, compared to over 100,000 in each of the same periods from 2013 to 2016. In the luxury price tier, there were 158 000 active listings in the third quarter, the fourth lowest level on record.

“The luxury market remains strong, but has passed its pandemic peak,” Fairweather said. “Now that life has somewhat returned to normal and travel restrictions have been lifted, many well-off Americans are choosing to spend their money on things other than housing.”

Premium home sales drop for the first time in over a year
Luxury home purchases fell 7% year-on-year in the third quarter and expensive home purchases fell 3.4%, the first declines since the end of three months July 31, 2020. The remaining three price points showed growth, albeit slower growth than in early 2021, as the overall housing market cooled from its pandemic peak.

The lack of inventory of high-end housing is one of the factors limiting sales in this segment of the market. Luxury home purchases are also likely to return to more normal levels after a disproportionate increase in the third quarter of 2020 that was fueled by wealthy remote workers seeking to escape big cities, Fairweather added.

Homes at all price points continue to sell faster and for more money than a year ago
While the current housing shortage is limiting home sales, strong price growth and market speed indicate that buyer demand remains strong across the board.

Median selling prices increased at least 15% year-over-year across all price points during the third quarter, with the mid-price segment growing at record high and the affordable segment growing near record. .

Homes also continued to sell at a much faster rate than last year in the third quarter. The typical luxury home for sale spent 30 days on the market, 30 days less than the same period a year earlier. The other four price points also saw market speed increase year over year.

A recent Redfin report found that a third of all homes sold in the four weeks ending 24 october entered into a contract within seven days of entering the market, indicating that the market continued to accelerate in the fourth quarter at a time of year when it is generally slowing down.

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/real-estate-price-tier-report-q3-2021

About Redfin
Redfin (www.redfin.com) is a technology-driven real estate company. We help people find housing through brokerage, Instant Home Buyers (iBuying), rentals, loans, title insurance and renovations. We sell houses for more money and charge half the cost. We also manage the first real estate brokerage site in the country. Our homebuying clients see homes with on-demand tours first, and our loan and title services help them close quickly. Customers selling a home can receive an instant cash offer from Redfin or have our home improvement team fix their home to sell it for the best price. Our rental business enables millions of people across the country to find apartments and houses for rent. Since our launch in 2006, we have saved more than $ 1 billion in committee. We serve over 100 markets across the United States and Canada and employs over 6,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn more about housing market trends and download data, visit Redfin Data Center. To be added to Redfin’s press release mailing list, send an email [email protected]. To consult the Redfin press center, Click here.

SOURCE Redfin

Related links

https://www.redfin.com

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