The CEO of actual property brokerage Redfin advised CNBC on Friday there’s been a much-needed cooling in the booming housing market not too long ago.
“For the past couple of weeks, housing has been hot instead of blazing hot, and it’s actually probably good for the market. We’ve been running too hot for too long,” Glenn Kelman stated in an interview on “Closing Bell.”
“Sometimes you’ll hear an agent say, ‘Well, we only got five or 10 offers on this property instead of 15 or 20,’ so I still think we’ll be supply constrained. There are more buyers than sellers,” Kelman stated.
Some of the key the explanation why housing demand has been so robust are nonetheless current, in line with Kelman. Those embrace elevated geographic flexibility because of Covid-related adoption of distant working and a transfer from high-tax states into lower-cost components of the nation. He stated these tail winds will seemingly maintain the curiosity in housing at elevated ranges.
However, different components have now developed to contribute to the tempering of demand, Kelman stated. Soaring costs are a part of the story, however not all of it, he contended.
“It’s also due to there’s not much good to buy. People come onto our website Redfin.com and they can’t even see a house that they love,” stated Kelman, who’s led the firm for about 15 years.
“A lot of it is just they don’t want to participate in these bidding wars. They’re tired of getting blown out,” Kelman additionally stated. “We’ve had so many buyers say, ‘I’ll be back in a month or two, but I just need to take a break,’ because the psychological toll of losing weekend after weekend, offer after offer, has really been hard on some of our homebuyers.”
Shares of Redfin rose 1.77% on Friday to shut at $60.97 apiece. The inventory is down 11% to date this 12 months, however stays up 90% for the previous 12 months.