More homes for sale will see price drops in coming weeks, said Redfin

Real Estate Brokerage Redfin Corp. RDFN,
said Friday it expects more homes for sale to see price declines in the coming weeks as supply begins to pick up and sales continue to decline in anticipation. “Just as buyers pull back, more offers are hitting the market,” said Redfin Chief Economist Daryl Fairweather. “I’m optimistic this will set the stage for a little rain in this inventory drought. A homeowner considering selling to buy again will have it much easier now than in March.” Pending home sales for the four-week period ended July 18 were up 9% from the same period a year ago, Redfin said, but that was the smallest increase since the four-week period ended June 28, 2020. The company said 55% of homes sold above list price in the period, up from 29% a year ago, but Redfin said that measure is “plateauing” as it has been declining since the four-week period ended. June 27 is at 54%-55%. Homebuilders ETF XHB,
has lost 3.2% in the past three months, while the S&P 500 SPX,
won 4.5%.