Lake Tahoe Real Estate. Lake Tahoe NV Living.: Redfin Agents Anticipate Kinder, Gentler Housing Market

Monday, July 22, 2013

Redfin Agents Anticipate Kinder, Gentler Housing Market

Technology-powered real estate brokerage Redfin says its latest boots-on-the-ground intel reveals the housing recovery is poised to soften with reduced competition and less intense price hikes. Redfin's Redfin Real-Time Agent Survey for the second quarter even hints that real estate agents are more likely to recommend that buyers step back and wait for the market to cool a bit later in the year. Other reports, including a recent market analysis from Capital Economics, says the double-digit annual price increases early this year are on their way out. That doesn't mean sellers are losing their edge - yet. "There has been a recent softening of the market, said Redfin Agent Mark Biggins. "Inventory has begun to increase steadily, while buyers are becoming fatigued and dropping out. The buyers that are active have more homes to choose from and this is spreading out demand, reducing the number of offers any given house will receive," Biggins added. Redfin collected data, June 21 through June 25, 2013, from 380 Redfin real estate agents in 22 major metropolitan markets across the U.S.

Real estate agents surveyed by Redfin:

Expect more modest price gains - 86 percent of agents believe home prices will rise in the coming months, down from 97 percent in the first quarter. Only 16 percent expect home prices to "rise a lot," down from 44 percent in the first quarter.

Notice less competition. Only 11 percent of agents recommend that buyers use aggressive strategies such as waiving contingencies and expanding their budget when facing a bidding war, down from 15 percent in the first quarter and signaling a shift away from the fierce competition seen earlier in the year.

Nevertheless, still struggling with low inventory and multiple offers - 93 percent of agents pointed to low inventory and multiple offers as the most common challenges facing buyers, down slightly from 96 percent in the first quarter.

Recognize that it is still a strong seller's market - 86 percent of agents surveyed described now as "a good time to sell," up from 82 percent in the first quarter. Meanwhile, only 46 percent described it as "a good time to buy," down from 57 percent in the first quarter.