Tag Archives: Chen Zhao

Renters nationwide are catching a slight break in their monthly payments, as Redfin data shows asking rents dropped for the third straight month in December.

Busy cities are abuzz with new apartment buildings, which are now going up at the fastest rate recorded in decades. This new report spotlights the regions where multifamily construction is surging to keep up with demand.

As mortgage rates drive upward for the sixth consecutive week, overall application volume fell after a week of rebounding, falling to levels last seen 28 years ago.

“In a homebuyer’s ideal world, rising mortgage rates would push demand and home prices down enough to make up for high interest payments. But that’s not what’s happening now,” said Redfin Economics Research Lead Chen Zhao.

Redfin reports that the median U.S. asking rent in September was little changed from a year earlier for the sixth straight month, with a rise in the number of rentals making it harder for landlords to boost prices.

“Tons of homeowners scored an incredible deal during the pandemic: a 3% mortgage rate for the remainder of their 30-year loan … this means buyers who are in the market now are duking it out for a very small pool of homes, preventing home values from plunging,” said Redfin Economics Research Lead Chen Zhao.

“In most of the country, expensive properties that are in good condition and priced fairly are attracting buyers and in some cases bidding wars, mostly because for-sale signs are few and far between right now,” said Redfin Economics Research Lead Chen Zhao.

”It shows that the Fed’s interest-rate hikes are working and increases the chance they’ll only hike rates one more time this year,” said Redfin Economic Research Lead Chen Zhao.

Pending home sales are down nearly 20%, representing the biggest decline in over four months, but people are still showing interest in homebuying despite the total number of U.S. homes for sale declining 6% from last June.

According to new research from Redfin, the historic drop in active listings due to the “lock-in” effect is bringing back the pandemic trend of bidding wars as homeseekers compete for a shrinking share of homes.