– The Federal Reserve’s policy shift has thrown a proverbial wet blanket on the fun party that was the real estate market. Heavy is the head that holds the interest rates.
– Redfin reports that both homebuyer and homeseller activity took a nosedive in January. It’s like a game of musical chairs where the music has suddenly stopped, but there aren’t enough seats left.
– New listing growth for the month of January dropped lower than your Wi-Fi signal in a basement. The market is colder than your ex’s heart.
– Active listing growth has dropped to the lowest levels since last summer. It’s like the real estate version of sunbathing in Alaska during winter.
– The ravenous wolves, I mean, homebuyers and sellers existing in the earlier part of the pandemic are now as scarce as hen’s teeth.
Federal Reserve’s Party-Pooper Policy Hits Real Estate Like A Ton Of Bricks
Homebuyer and Homeseller Activity Takes Nose-Dive: Redfin
– January’s listings dropped faster than a coin in a wishing well; homeowners seemingly hung ‘Closed’ signs indefinitely.
New and Active Listings Freeze Over in Winter, Hit Lowest Since Last Summer
– With fewer listings than there are good Nicolas Cage movies, it’s less of a buyer’s market and more of a bird-watcher’s market.
And now for my hot take.
‘Musical Chairs’ Meets ‘Game of Thrones’: Today’s Real Estate Market
The real estate market these days feels more like a high-stakes drama series than an opportunity to land a dream home. Central characters, I mean homebuyers, and sellers alike have been skittish at best, reacting to the Federal Reserve’s policy shift like cats to a cucumber. New listings have cooled down enough to rival the Night King’s army while the stock of active listings is like browsing through Ye Olde Shoppe of Rare Antiques – treasures are few and far between.
The quirky rhythm of the market makes it less predictable than a season finale of ‘Game of Thrones’; you think you have an idea about what’s going to happen, but suddenly you’re left staring at the credit roll in shock. If this keeps up, expect plot twists that could make George R.R. Martin blush.
These strange new chapters of the real estate saga serve as a stark (pun absolutely intended) reminder that, in the world of real estate as in ‘Game of Thrones’, winter can come at any time. So, don your furs, hunker down, and keep your real estate dragons, I mean dollars, close – you’re going to need them.
Original article: https://www.inman.com/2024/02/16/rising-rates-and-home-prices-stifle-january-market-redfin/
