Redfin Reports Largest Drop in U.S. Home Prices in 11 Years for March
Redfin, the online real estate brokerage, recently reported that home prices in the United States fell in March by the largest percentage in 11 years. The report cited a combination of factors, including a slowdown in the housing market due to rising mortgage rates, higher home prices, and tighter lending standards.
According to Redfin’s data, the median home price in the United States fell by 1.7% in March compared to the previous month, marking the largest monthly drop since February 2010. The report noted that this decline was particularly pronounced in expensive coastal cities, such as San Francisco, Los Angeles, and New York.
Redfin’s chief economist, Daryl Fairweather, commented on the report, saying that “we’re seeing a shift in the housing market from a seller’s market to a more balanced market.” Fairweather attributed this shift to a combination of factors, including rising mortgage rates, which have made it more difficult for some buyers to afford homes, and higher home prices, which have deterred some potential buyers from entering the market.
The report also noted that the number of homes for sale in the United States increased by 9.1% in March compared to the previous year, suggesting that the housing market may be becoming more favorable for buyers. However, the report cautioned that the market remains highly competitive in many areas, and that home prices are still higher than they were before the pandemic.
Despite the recent decline in home prices, the overall trend in the housing market remains positive. Redfin’s report noted that home prices are still up by 7.2% compared to the same period last year, and that the number of homes sold in March was higher than it was in March 2020.
In conclusion, Redfin’s report highlights the ongoing challenges facing the U.S. housing market, as rising mortgage rates and high home prices continue to impact both buyers and sellers. However, the recent decline in home prices may offer some relief to buyers, while the overall strength of the market suggests that it remains a good time for homeowners to sell their properties.
