After nearly two years with sellers having the upper hand, buyers finally have another chance to purchase the home they always wanted (even with higher mortgage rates). Indicators that highlight the bright side to this cooling market include:
Homes are less expensive than they were in the spring (in several places, but not necessarily here yet). Home sale prices and asking prices are both down 6% from the record high they reached in June when we look across the United States.
Homes are finally selling for under their asking price. The typical U.S. home sold below its asking price in August for the first time since March 2021, meaning buyers are having some success negotiating prices down, something that was essentially unheard of at the height of the pandemic homebuying frenzy.
Home buyers have more choices. The total number of homes for sale was up 4.2% year over year in August across the United States. For-sale supply has been increasing year over year since June after a severe shortage in the number of homes for sale that started even before the pandemic.
Competition for homes is easing. Nationwide, less home offers faced bidding wars in July than at any point since of April 2020.