The fear of imminence foreclosure brought more listings at the lowest price point in the housing market in the second quarter, according to a report by Redfin.
The number of active properties for sale in the most affordable bracket — those with a median price of $108,000 — rose 11.3% year over year. Comparatively, the luxury tier — median price of $1.03 million — came next with a 1.3% annual gain in supply. Affordable homes – those with a median of $198,200 – rose 0.7%, while expensive homes at a median of $455,000 fell 5.4% and mid-priced homes – $290,000 – fell 7.1%.
“The government’s pandemic mortgage forbearance program is coming to an end, likely boosting the supply of America’s most affordable homes,” Fairweather said. “Some homeowners put their properties on the market because they fear foreclosure when forbearance dries up, while other affordable homeowners sell because they want to avoid foreclosure. increased competition from sellers that will likely happen when forbearance ends.”
The most affordable and luxurious tiers also saw the largest annual increase in values and houses sold. Prices for the luxury tier jumped 25.8% as sales jumped 88.2%, while prices and sales for the more affordable homes jumped 18.7% and 56.8%, respectively . House equity gains rose sharply during the pandemic, especially at the higher end of the market.
Meanwhile, investors bought more single-family homes than ever in the second quarter and now own 15.9% of all properties in the United States. It is particularly prevalent at the bottom of the market, where investors have taken the largest share of purchases.
“Spiking prices can be particularly problematic for first-time buyers and low-income buyers,” Fairweather said. for rent.”