Redfin CEO Glenn Kelman has expressed concern over the impact of rising rates and home prices on consumer sentiment. He believes that increasing inventory and a year-end interest rate reduction are crucial to restoring confidence in the market.
At Inman Connect Las Vegas, happening from July 30-August 1, 2024, attendees can expect a focus on clarity, information, and new business opportunities. Rising mortgage rates and home prices are causing uncertainty among potential homebuyers, dampening their hopes of achieving homeownership.
Kelman noted a significant shift in consumer behavior, with a sharp increase in the number of renters who believe they may never be able to buy a home. He emphasized the importance of more inventory and lower rates in revitalizing the market.
Despite the usual trend of declining home prices with rising mortgage rates, Kelman highlighted that this pattern has not held true in recent times. This has led to a considerable increase in the median mortgage payment, making housing unaffordable in many major markets.
He stressed the significance of addressing these challenges by increasing housing inventory and implementing rate cuts to stimulate market recovery. Kelman remains optimistic about the potential for a market upturn if these measures are implemented by the end of 2024.
In the meantime, Kelman encourages potential buyers who can afford current housing costs to consider purchasing a home that meets their long-term needs. He advises buyers to take advantage of the current market conditions and secure a property that suits their requirements.
Kelman also highlighted the opportunity for buyers to potentially refinance their mortgages in the future, emphasizing the importance of seizing the present opportunity amid market uncertainties. He underscored the importance of seizing opportunities now rather than waiting for potential market shifts in the future.
For more information, readers can contact Marian McPherson via email.
Glenn Kelman, CEO of Redfin, expressed concern about rising mortgage rates and home prices affecting consumer sentiment in the real estate market. He highlighted a significant increase in the number of renters who believe they will never be able to buy a home. Kelman emphasized the importance of increasing inventory and lowering interest rates to revive the market. He advised potential homebuyers to take advantage of the current situation and purchase a home that meets their needs for the long term. Kelman also mentioned the possibility of refinancing in the future when rates are more favorable. The Redfin CEO’s insights suggest that a market rebound may be possible with these key changes.
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