Home Prices Fall

August data show price reductions prevail: might this be a perfect time for you to buy a home?

“For many of today’s buyers, the uptick in for-sale home options is taking away the sense of urgency that they felt during the past two years, when inventory was scarce,” notes Danielle Hale, Realtor.com’s chief economist, in a recent post at cnbc.com. 

Trends in list prices show that inventory growth in combination with an increase in mortgage loan rates force sellers to rethink pricing strategies of only a few months ago.

Indeed, many buyers are opting to wait things out given rates nearly reaching last June’s heights.  The article notes that real estate agents report home showing activity dipped 16% at the end of August versus one year ago, and is down 9% from the start of 2022.

This compares to “an 11% increase at the same time last year.”

Other interesting facts to inspire today’s competition-weary buyers:

·        In August, 20% of sellers reduced their asking price—last year, only 11% of sellers dropped their prices;

·        On average, homes currently sell below the list price—a circumstance unheard of over the prior 17 months;

·        Home inventory is growing quickly—almost 27% higher than last year; and

·        Pending home sales from July were almost 21% less than one year ago.

Sellers are reacting to market conditions by asking lower prices—the median home price in August fell from $449,000 to $435,000, according to the post.

Experts believe fall’s typical drop in home shopping will be greater than usual, and for-sale houses will continue to linger on the market.

This is good news for buyers, who might expect another round of price drops—perhaps creating perfect conditions to shop for a new home.

Post authored by Lora Bray.

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