Bluebid Buzz: October 20
As a benefit to the homeowners and homebuyers using our platform, I share a regular summary of housing market news and data driving our decision-making here at Bluebid Homes. We call it the Bluebid Buzz.
Disclaimer: Views expressed here are my own and not the views of my coworkers or anyone else. I am not a financial advisor, investment advisor, or housing expert. I’m just a guy who cares deeply about saving the American Dream of homeownership.
Here's the buzz for the week of October 20, 2022…
According to a recent report from Redfin, US homes sales dropped 25% year-over-year in September, while new listings fell 22%, and approximately 60,000 deals – or 17% of homes that went under contract – fell through. Demand has fallen off a cliff, but Redfin says prices remain elevated thanks to inflation and fewer homes being listed for sale.
CNBC says homebuilder sentiment has dropped by half in the last six months. Current sentiment sits at its lowest level since 2012, except for a brief period in the early days of the pandemic.
Boston.com writes home sales in Massachusetts have plummeted year-over-year, with single family sales down 16.2% annually and condos down 22.9%. Even still, prices continue to rise.
The WSJ reports buyers are increasingly waiting on the sidelines for mortgage rates or home prices to fall. Despite low-yields, buyers are placing would-be down payments in savings accounts.
CNN notes that banks reporting third quarter earnings have revealed weakening homebuying trends. JPMorgan home lending revenue was down 34% annually, while Wells Fargo saw a 52% decline over the same period.
While housing inventory continues to plunge, Bluebid Homes has added hundreds of housing units to its platform in recent weeks that won’t be found on the market.
Have a great week.