We all know that the housing market has become a scary, chaotic place since the start of the pandemic, but do we know just how scary? In a new thread from Glenn Kelman, the CEO of real estate brokerage Redfin, it's revealed that the housing market is more upsetting than many of us may have thought.
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"It has been hard to convey, through anecdotes or data, how bizarre the U.S. housing market has become," Kelman writes. "For example, a Bethesda, Maryland, homebuyer working with @Redfin included in her written offer a pledge to name her first-born child after the seller. She lost." This is just the beginning.
The following tweets explain that there are now more realtors than listings and that inventory is down 37% year over year.
In both New York and San Francisco, inventory has increased — yet in both places, prices are still soaring. Speaking of soaring, Kelman also drops this shocking statistic:
In an annual Redfin survey featuring 2,000 homebuyers, the company discovered that 63% of people have bid on a home they didn't see in person. And as for the people who were able to relocate, two-thirds of them were able to get a house the same size or bigger than their previous residence. Two-thirds were also spending the same or less on housing. This is having an interesting effect on the American workforce:
It gets worse. "It's not just income that's k-shaped, but mobility," Kelman says. "90% of people earning $100,000+ per year expect to be able to work virtually, compared to 10% of those earning $40,000 or less per year. The folks who need low-cost housing the most have the least flexibility to move."
When will the housing market calm down and allow for more equal opportunities? Unfortunately, not any time soon. Until then, we can only imagine how many first-born children will bear the names of the person who sold their parents a home.