The CEO of real estate brokerage firm Redfin told CNBC on Friday that there had been a much needed cooling recently in the booming housing market.
“For the past two weeks the housing has been hot instead of blazing, and that’s probably good for the market. We’ve been too hot for too long,” Glenn Kelman said in an interview on ‘Closing Bell’ .
“Sometimes you’ll hear an agent say, ‘Well we only got five or 10 bids on this property instead of 15 or 20’, so I always think we’ll have supply constraints. more buyers than sellers, ”Kelman mentioned.
Some of the main reasons the demand for housing has been so strong still exists, according to Kelman. These include increased geographic flexibility through the adoption of Covid-linked remote working and the shift from high-tax states to lower-cost regions of the country. He said those tailwinds will likely keep housing interest at high levels.
However, other factors have now developed to help moderate demand, Kelman said. Soaring prices are part of the story, but not all, he argued.
“It’s also because there isn’t much good to buy. People come to our Redfin.com website and they can’t even see a house they like,” Kelman said. , who has run the company for about 15 years.
“It’s largely because they don’t want to participate in these bidding wars. They are tired of blowing themselves up,” Kelman also said. “We’ve had so many buyers who have said, ‘I’ll be back in a month or two, but I just need a break,’ because the psychological toll of losing weekend after weekend, offers after offer, was really tough on some of our home buyers. “
Redfin shares rose 1.77% on Friday to close at $ 60.97 apiece. The stock is down 11% so far this year, but remains up 90% in the past 12 months.