Redfin’s CEO is predicting that home prices will fall this summer as homeowners feel the pressure to sell. The real estate brokerage is expecting a 1% price drop by the end of the year, with homes in states like Florida and Texas already seeing major price cuts.
CEO Glenn Kelman noted that homeowners who have been waiting out high mortgage rates are beginning to realize they can’t postpone moving any longer. This has led to an increase in the supply of available inventory, causing prices to start to budge.
In a recent interview, Kelman explained that factors like divorces, growing families, and other life changes are prompting homeowners to list their properties. Redfin data shows that the supply of available homes rose to 1.6 million in April, up 13.7% from the previous year.
With the number of newly listed homes for sale also on the rise, Kelman anticipates a decline in home prices by the end of the year. However, he acknowledged that homeowners may be emotionally attached to their properties, making prices “stickier” and the price decline slower than expected. Despite this, he believes it will be a soft summer for home prices.