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RDFN
Market Watch
174 days

The brightest spot in the housing market is fading fast - MarketWatch

1. New-home sales dropped 10.5% in January, the lowest since October 2024. 2. Severe winter weather contributed to buyers avoiding property viewings. 3. High home prices and mortgage rates deterred potential buyers. 4. Builders face pessimism regarding future sales due to high inventory levels. 5. Existing home inventory increased 17%, impacting new construction demand.

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FAQ

Why Bearish?

The significant drop in new-home sales indicates a slowdown. A historical context shows declines in new-home sales often correlate with falling stock prices for real estate companies.

How important is it?

The article outlines trends directly affecting the housing market, critical to RDFN's business model in facilitating home sales.

Why Short Term?

The immediate decline in new-home sales can dampen investor sentiment quickly. Examples can be drawn from past home sales downturns affecting stock performance shortly thereafter.

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