August Market Report
Housing Market Update: Balance is Slowly Returning as Homebuying Demand Moderates
Nearly 5% of listings saw price drops, the highest level since 2019.
Home sellers are increasingly realizing that the housing market is no longer heating up. The share of homes for sale with a price drop rose for the fifteenth consecutive week to 4.9%, a level last seen in 2019. Buyers may also be starting to notice that homes are staying on the market a little longer—a median 17 days—as more homeowners are listing their homes and at more realistic prices. Asking prices have eased back to where they were in May, and while they are still being bid up half the time, homes are selling for less of a premium above list price than they were last month.
Overall, the market is becoming more balanced and following typical seasonal trends. The scales are still tipped in favor of sellers, but not as dramatically as they were in the spring.
“For the first time in over a year, homebuyers don’t need to feel rushed,” said Redfin Chief Economist “Although the market still feels tight and competitive, the number of homes for sale keeps creeping up as more homes are listed. Those home sellers are adjusting their price expectations or seeing their homes sit on the market. There could be even more listings coming on the market as mortgage forbearance ends and homeowners with missed payments decide to sell. And mortgage rates remain near all-time lows with no signs of an increase on the horizon.”