U.S. Pending Home Sales Sink Near 12-Year Low

Chen Zhao, Head of economic research at Redfin

“It's not surprising that when rates climb above 7%, fewer people buy homes because fewer people can afford them. But dig a little deeper, and there's a silver lining on both sides. For buyers, less competition means more room to negotiate: on price, on closing costs, on repairs, and sometimes sellers even pay for a mortgage-rate buydown. Slow sales also mean prices may flatten or fall in the not-so-distant future. Sellers should remember that while many house hunters have pulled back, there are some people who need to move and are still buying homes. My best advice for sellers in this environment is to price realistically from the start and lean into any flexibility you can offer; a rate buydown or covering closing costs can go a long way when buyers are stretched thin.”

Brian Connelly, Redfin Premier agent in Boston

“For the last decade, there was almost a certainty that if you listed a home, it would sell–and it would usually sell quickly, with multiple offers. Now, the calculus has changed. If you're not pricing slightly below nearby comps and prepping your home meticulously, your home may very well linger on the market, leading to price cuts or delistings. If you're selling a home, be aggressive and list it potentially 5-10% below what you think you should list it for. Ensure there's absolutely nothing a buyer would balk at–the landscaping should be perfect and the home should be staged. That can help prevent future potential price drops, and the negative perception of accruing days on market.”