BiggerPockets Daily Redfin Turns Bear in It's Latest Price Forecast
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May 27, 2025 Home prices are shifting, and not in favor of sellers. Redfin's forecast predicts a 1% drop in the national median sale price by year's end due to rising inventory and fewer buyers. The discussion covers how sticky inflation and mortgage rates near 7% are shaping this trend. Insights into wage dynamics reveal challenges in affordability, while stable mortgage rates empower buyers with more negotiating power. Overall, the market landscape is evolving, and potential shifts in housing affordability may await.
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Redfin Forecasts Price Decline
- Redfin forecasts a 1% year-over-year drop in median US home prices by Q4 2025.
- This reflects a shift from years of consistent annual home price increases driven by supply and demand changes.
Supply Rises While Demand Falls
- Housing inventory jumped 16.7% year-over-year to a five-year high, while buyer demand cooled.
- This imbalance forces sellers to cut prices and offer concessions to attract buyers.
Buyers Should Hunt Negotiation Deals
- Buyers should target listings that have been on the market for weeks to negotiate better deals.
- Look for price gaps and seller concessions like mortgage rate buy-downs or closing cost help.