'It’s a remarkably uncertain time': Redfin CEO warns of rapidly cooling housing market — says deals under contract are being cancelled

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The housing market is sputtering as buyers pull back sharply. After the Federal Reserve hiked interest rates, “demand fell sharply in May and June … buyers were absolutely freaked out,” Redfin CEO Glenn Kelman told MarketWatch in an interview.

After a stellar two-year run, the housing market is sputtering as buyers pull back sharply. One real-estate chief said the market is indeed course-correcting, and it’s getting hard to make a deal as more contracts falling through.

“It’s just hard to put deals together because the economy is so volatile,” he added. “It’s a remarkably uncertain time.” — Redfin Chief Executive Glenn Kelman Responding to buyers pulling back from the market, sellers have also become increasingly apprehensive about listing. To find a match quickly, sellers are pricing their homes more aggressively, with the median asking price of newly listed homes falling 5% from the record high set in May.

“‘Some of the price corrections that are in the public record understate just how drastic the correction has been.’” The median home sale price was $371,125, according to Redfin. That’s up 6% compared to the year before. Sale prices have dropped 6% after peaking in June, when the median home price was at $394,775.

The 30-year fixed-rate mortgage averaged 5.55% as of Aug. 25, according Freddie Mac. A year ago, that was at 2.68%.

 

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so far, the fools I know that have sold when they did not have to are losing a fortune in their sale, plus they are going to be hit with huge income tax and capital gains taxes...

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