[The Epoch Times, May 4, 2022](The Epoch Times reporter Li Ou compiled and reported) Since last year, the United States hasreal estateMarket to buy a housebidintense, butMortgageinterest rate, which has risen steeply since March. On April 28, the average 30-year fixed interest rate of Freddie Mac data was 5.10%, a slight decrease of 0.01% from the previous week. At the same time, the proportion of bids to buy a home appears to be on a downward trend across the United States.
bidSlowing demand begins to cool
According to Redfin data, 65% of home offers faced competition in March, down from 67% in February, as more buyers turned to the sidelines.This was the first month-on-month decline since September last year – a sign thatMortgageinterest rateAnd soaring home prices prompted some buyers to pull out of the market and demand began to cool.
Still, bidding wars are more common than they were a year ago, when 62.2% of bids ran into competition. On an unadjusted basis, the bid rate in March was 69.3%, down from 71.9% in February.
Daryl Fairweather, chief economist at Redfin, said: “Most homebuyers are still experiencing bidding wars, but competition is starting to cool as soaring interest rates and home prices prompt some Americans to pull out or put purchases on hold. “
“We expect the bidding war to ease further in the coming months as more buyers exit the market as interest rates rise. This should provide some respite for those who can still afford to buy. Unfortunately, the slowdown in competition It doesn’t help people who have been squeezed out of the market by high prices, and renters (potential home buyers) who are now struggling with high rents.”
The decline in homebuyer competition isreal estateA sign that the market is starting to slow down. Mortgage applications, home travel and online home searches are also down, with more sellers lowering their asking prices after listing their homes for sale.
Two of the most competitive housing markets
San Jose, Calif., had the highest bid rate of the 36 U.S. metropolitan areas in the analysis, with 79.8% facing competition in March. Boston is next at 79 percent; Providence, RI, at 78.3 percent. Worcester, MA, and San Diego rounded out the top five, with bid rates of 78.2 percent and 78.1 percent, respectively.
Conversely, the five cities with the lowest bidding probability are Riverside, California, Nashville, Tennessee, Honolulu, Hawaii, Indianapolis, Indiana, and Orlando, Florida. You can see that the bidding probability is basically Below 60% and above 50%.
While competition in the expensive coastal market is relatively high, fewer Redfin buyers were in San Francisco, Los Angeles, Washington, D.C., Boston and Seattle at the beginning of the year compared to the same period last year. In San Francisco, bidding wars averaged 7.8 offers in March, down from 10 in March last year — another sign that homebuying demand is starting to cool.
Maria Giron, a Bay Area-based Redfin real estate agent, said: “Some buyers were shocked and pulled out entirely. Others were looking for more affordable options, such as smaller homes or further communities, which I worked with. First-time buyers are looking for homes in the $500,000 to $700,000 range.”
As for where interest rates are headed, investors appear to be expecting a 50 basis point (two yards) rate hike at each FOMC meeting due to muted economic data the previous week, according to Zillow. Fixed income markets remained volatile as investors weighed the timing and volume of Fed action against the risk of a near-term recession and uncertainty over Ukraine.
Currently, the Fed is in a “blackout period” ahead of its May meeting, so markets will be watching economic data coming out next, including indicators of economic growth, inflation, and employment costs and wages. Then, interest rates may move based on all of this data. ◇
Watch the video for more: Is the U.S. Real Estate Bubble? These places are cooling down | The bidding probability has changed! ｜The San Francisco Bay Area is rising against the trend? ｜Welcome another wave of Chinese buying houses? ｜ One of the main reasons for the decline in housing prices[US Real Estate Hotspots]Episode 65
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This article was published in the April 30 issue of Real Estate in San Francisco
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Responsible editor: Li Yaoyu#
