A recent survey by Redfin, the Seattle-based real estate company, found some substantial disconnects among buyers, sellers, and market reality. They are, the company said, not on the same page when it comes to the state of the housing market. While inventories have increased, buyers are still hesitating because of hurdles presented by affordability and access to credit. Sellers have been slow to acknowledge that the market is shifting away from them.
Redfin interviewed 707 of their agents and associates spread across 35 U.S. markets in late June about the attitudes and behaviors they see in their dual clientele. Just 24 percent of agents told the company that “sellers have all the power” in their markets, down from 35 percent three months ago. While the trend in the sentiment was similar nationwide, there were regional differences in the degree. In the upper Midwest only 12 percent of agents think sellers are in charge, half of the level in the first quarter of 2013. In the West and Northeast 30 percent of respondents said it was a sellers’ market, down 8 and 3 percentage points respectively.
Redfin Chief Economist Nela Richardson said sellers appeared to have not yet grasped the change. “In May, 40 percent of sellers surveyed by Redfin said that they planned to… [Read entire article…]