The fear of imminence foreclosure brought more listings at the lowest price point in the second-quarter housing market, according to a Redfin report.
The number of active properties for sale in the most affordable bracket – those with a median price of $ 108,000 – increased 11.3% year-over-year. Comparatively, the level of luxury – 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 homes expensive to a median of $ 455,000 fell 5.4% and mid-range homes – 290,000 $ – fell 7.1%.
“The government’s mortgage forbearance pandemic program is coming to an end, possibly increasing 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 foreclosures. increased competition from sellers this is likely to happen when the forbearance ends. “
The most affordable and luxurious levels have also seen the largest annual increase in values and houses sold. Prices for luxury categories soared 25.8% with sales up 88.2% while prices and sales of the most affordable homes jumped 18.7% and 56.8%, respectively. Homepage equity gains have increased sharply during the pandemic, especially at the high end.
During this time, investors bought more single-family homes than ever before in the second quarter and now own 15.9% of all properties in the United States. This is particularly prevalent at the bottom of the market, where investors have taken the largest share of the buying.
“Soaring prices can be particularly problematic for first-time home buyers and low-income buyers,” Fairweather said. for rent.”