Currently Reading

Redfin CEO Says Market Has Cooled as Buyers Take a Break

Advertisement
Market Data + Trends

Redfin CEO Says Market Has Cooled as Buyers Take a Break


June 14, 2021
house exterior
Photo: Joe Hendrickson | stock.adobe.com

The overwhelming heat of the housing market has cooled to a more manageable level during the past few weeks, says Redfin’s CEO Glenn Kelman. Still, the same hurdles and demands continue for buyers, such as more affordable housing, more space, and little options. Instead of 15 to 20 offers on a property, Kelman tells CNBC that agents now say they’re receiving five to 10 offers. Housing inventory remains a struggle, but the recent cool down is welcomed for the market, says Kelman. Affordability could be one reason for the cool down, but the lack of options may be the more pressing reason buyers are holding off.

Some of the key reasons why housing demand has been so strong are still present, according to Kelman. Those include increased geographic flexibility thanks to Covid-related adoption of remote working and a move from high-tax states into lower-cost parts of the country. He said those tail winds will likely keep the interest in housing at elevated levels.

However, other factors have now developed to contribute to the tempering of demand, Kelman said. Soaring prices are part of the story, but not all of it, he contended.

“It’s also due to there’s not much good to buy. People come onto our website Redfin.com and they can’t even see a house that they love,” said Kelman, who’s led the company for about 15 years.

“A lot of it is just they don’t want to participate in these bidding wars. They’re tired of getting blown out,” Kelman also said. “We’ve had so many buyers say, ‘I’ll be back in a month or two, but I just need to take a break,’ because the psychological toll of losing weekend after weekend, offer after offer, has really been hard on some of our homebuyers.”

Read More
 

Related Stories

Housing Markets

2020's Hottest Markets Were Coastal and Affordable

In its 2020 Hottest Cities for Homebuyers report, CoreLogic found affordable coastal metros to be the most popular, posting the highest in-…

Multifamily

Return to Work Begins to Impact Rental Demand

The suburban shift resulting from the pandemic continues, but for the first time since early 2020, interest in urban areas is notably up.…

Affordability

Affordability Worsens for First-Time Buyers

Buying a home remained difficult in the second quarter of 2021, but it became even more difficult for first-time homebuyers. NerdWallet analyzed…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.