Home sellers are getting nervous as the once-buoyant real estate market cools quickly.
According to Realtor.com, one in five sellers lowered their selling price in August.
A year ago, this proportion was still 11%. The average home sold below list price for the first time in more than 17 months in the four weeks ended August 28, according to a report by Redfin.
Homes just aren’t selling at the breakneck pace of six months ago, when strong demand met tight supply, bidding wars were the norm and a seller could often get a property signed. Contract in less than a weekend. Houses were on the market an average of five days longer in August than a year ago, the first annual increase in time on the market in more than two years.
The supply of homes for sale is also increasing rapidly, up nearly 27% from a year ago, although fewer sellers are choosing to list.
Pending sales in July, which represent signed contracts for existing homes and represent the latest available sales data, were nearly 20% lower than in July 2021, according to the National Association of Realtors Sense of urgency they have felt over the past two years. when inventory was just under said Danielle Hale, chief economist at Realtor.com.
“As a result of this change, coupled with higher mortgage rates, competition cooled further in August, with list price trends suggesting home buyers are adjusting. the threads of your portfolio.
The average listing price fell in August to $435,000 in August from $449,000 in July, according to Realtor.com.
Mortgage rates have been rising since January, hitting a new high in June before falling slightly in July and August. However, they are rising again and are now close to their June highs. Redfin reported that requests for home tours and other home-buying services from its agents were down 16% at the end of August compared to the same period last year according to home tour technology company ShowTime.
“The post-Labor Day slowdown is likely to be a little more intense this year than in previous years when the market was very tight,” said Daryl Fairweather, chief economist at Redfin.
“Hopefully the houses stay on the market, which may lead to a further slight increase in the proportion of sellers who lower their prices.