From Mansion Global:
Would-be buyers are turning their backs on the turbulent U.S. housing market in droves, according to new data released from Redfin on Monday.
The number of pending sales, the amount of deals being scrapped and the proportion of homes seeing their asking price slashed all reached foreboding milestones in an October chill that could rival winter’s.
Pending sales dropped 32.1% annually to 414,492 last month, the largest decline since at least 2013, when Redfin’s records began.
At the same time, almost 60,000 home-purchase agreements fell through, equating to 17.9% of the homes that went under contract last month, a record high, the data showed. In addition, almost one-quarter, or 23.9%, of homes for sale in October experienced a price drop, double the rate of a year earlier, the online property portal said.
“The Fed’s actions to curb inflation are causing the housing market to slow at a pace not seen since the financial crisis,” Chen Zhao, Redfin’s economics research lead, said in the report.
“There are already early but promising signs that inflation is cooling, which caused mortgage rates to drop last week,” she added. “If that progress continues, buyers who recently backed out of deals may return to the market and sellers may be less inclined to slash their prices.”