Home News For-sale homes are spending more time on the market. That may be good news for home buyers.

For-sale homes are spending more time on the market. That may be good news for home buyers.

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It takes more time for homeowners to sell their homes. This could be good news for homebuyers with more room to negotiate.

Mortgage rates are soaring, averaging 7.37% for 30-year fixed rates as of Thursday. Mortgage News Daily.

According to Redfin, the average homebuyer’s monthly mortgage payment is up 50% from a year ago when the mortgage interest rate was 3%.

Large increases in prices have cooled buyer demand, Pre-owned homes decreased for the eighth straight month. 2007 was the last time that many consecutive months saw sales decline.

So it makes sense that the for-sale list isn’t moving as fast as during the pandemic.

Compared to last year, listings now take eight more days to go from being on sale to being pending.Zillow Z. said in report released on WednesdayZillow said the longer these homes remain on the market, the “exciting” it will be for sellers to lower prices to attract more buyers.

Zillow added that 27.5% of September listings were discounted because of this. Prior to the pandemic, only about 22% of listings were discounted.

Zillow senior economist Jeff Tucker told MarketWatch:

“For those who can afford it, terms are much more affordable than they were last year. Less competition means home shoppers have more time to explore their options to find the best fit. That means you’re less likely to get caught in a bidding war, and you might even get a discount on the list price,” he added.

“Home sales are taking twice as long as they did in the spring. Reporting by Redfin
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Said.

As seen in the chart below, sellers are lowering prices to attract buyers.

“On average, 7.9% of homes sold each week saw price declines, up from 3.9% a year earlier,” said Redfin.

Graphics: Redfin

Chen Zhao of Redfin said:

“This means lowering and negotiating prices, including giving buyers credit to lower mortgage rates and paying for home repairs,” Zhao added.

Redfin said the homes for sale had been on the market for 34 days, a week longer than homes were on the market a year ago. It’s also a big change from May of this year, when homes sold in an average of 17 days.

As of mid-October, about 8% of homes for sale had their prices cut to attract buyers, up from 4% a year ago, Redfin added.

The increase in time on the market is consistent with other real estate companies’ analysis.

Realtor.com also said The homes were on the market for an extra week in October.

“For homeowners looking to sell, this means extra time planning in the process,” the report said. “For buyers, it may mean they have a little more time to consider their options.”

(Realtor.com is operated by Move Inc., a subsidiary of News Corp. MarketWatch is a division of Dow Jones, which is also a subsidiary of News Corp.)

Existing homes for sale stayed on the market for 19 days in September, slightly longer than the 16 days reported in August. The National Association of Realtors said Thursday.

Buyers’ anxiety over prices has resulted in shrinking home sellers’ profits, he said. Atom said.

According to one study, margins on median single-family home and condo sales across the United States fell 54.6% as home prices fell for the first time in three years. company report.

“Rapidly rising mortgage rates are not only leading to lower home sales, they are starting to impact home prices,” said Rick Sharga, executive vice president of market intelligence at ATTOM, in a statement.

Median home prices fell about 3% from the second quarter to about $340,000, the company said.

Cities such as Claremont, New Hampshire Lebanon, San Francisco, Prescott, Arizona, and Barnstable, Massachusetts saw the biggest drops in profits.

And with mortgage rates poised to rise, “it is very likely that house prices will continue to decline in many markets over the coming months,” Sharga said.

“If the Federal Reserve’s aim was to slow the housing market, it has succeeded admirably,” he added.

“Open House” held at a house in Los Angeles in September. As homeowners take longer to sell their homes, buyers have more room to negotiate prices.

(Photo by Alison Dinner/Getty Images)

Another metric that should be closely tracked is inventory. In real estate terms, it’s the monthly supply.

That number indicates how many months it would take to sell the current inventory of homes on the market at the current pace. NAR said.

Homes for sale in September took about 3.2 months to sell on the market, still short of the typical 4-5 months for home sales pre-pandemic, but a significant difference from the last two years.

In January 2022, the items for sale are 1.6 months, the lowest ever According to NAR data, it is on the market.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, said overall housing inventory remains low, even if it is currently rising.

People are sitting at home either hoping to keep mortgage rates at record lows or fearing they won’t be able to sell for the price they want. Sellers are “on strike”. Written by a home blogger.

About 86% of people with mortgages have interest rates of less than 5% and 24% have less than 3%. Data on outstanding mortgages from Federal Housing Finance Agency data. Data is current as of June 30, 2022.

The number of new listings for sale in September was 15% lower than a year ago. Realtor.com Quote. Redfin says that listings are 22% drop in September Increased by 25% compared to the previous month and compared to 1 year ago.jiro said Listings Decreased in September 16% from a year ago.

Also, the smaller the number of listings, the less likely it is that the price will fall.

But for the market to fully rebalance, prices would need to fall “significantly,” Shepardson said. He expects house prices to fall 15% to 20% next year.

Thinking about the housing market? Write to MarketWatch reporter Aarthi Swaminathan ([email protected]).

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