The housing market is going through tough times right now amid high mortgage rates, rising inflation and economic uncertainty. What follows is the report of Redfin, specializing in real estate, for this 2022.
Redfin used the following parameters for the following investigations:
the price falls
sell to inventory ratio
home sales speed
The company found that, out of 100 cities, the markets that cooled the most were located on the West Coast of the United States.
The first city to lead the “cold” housing market list is Seattle, WA. According to Redfin, “Seattle’s real estate market is cooling off faster than any other in the country,” reports cnbc.com.
“The demand and competition for homebuyers in the city of Washington state has decreased. About 34% fewer homes were sold in two weeks in August than a year earlier.
That is, according to statistics, buyers in Seattle take longer to choose and properties, as a result, take longer to sell.
Seattle Y Tacoma
Tacoma is followed by Seattle, about 35 miles to the south. The region ranks second on the list with the “fastest cooling market”.
“Many sellers can’t get the price they want because buyers don’t want to compete with other offers when mortgage rates are twice as high as a year ago,” said David Palmer, broker at Seattle Redfin, in the report.
“That means fewer sellers are listing their homes and fewer buyers are bidding on those in the market.”
These are the 10 cities in the United States where the housing market is going to cool off in 2022:
San Jose, California
San Diego, California
Sacramento and Denver
North Harbor, Florida
To read the full report, click here.