While not a drastic drop, average home sales prices fell below list prices in August for the first time in about 18 months. According to Redfin, this is just one of the signs of a slowdown in the housing market.
For the first time in almost 18 months, average homes fell below list prices in August, according to a market analysis by Real estate company Redfin.
While not alarming the ‘sell side’ of the housing market, Redfin reports that the average selling price ratio fell to 99.8% in August. This is down from his 101.4% the previous year.
The actual final closing price is likely to be even lower than the original listing as a record 7.5% of homes on the market have fallen in price.
Homes sold in August have been on the market for a median of 26 days, with homes taking longer to reach contract. That’s up from 21 days in the same period last year, hitting a record low of 17 days in May and his June.
Google searches for “homes for sale” were down 26% year-over-year in August, while home tour activity was down 9% year-to-date, according to ShowTime.
“The post-Labor Day slowdown this year is going to be a little more intense than last year, when markets were very tight,” said Darryl Fairweather, chief economist at Redfin. “Expecting homes to stay in the market could again lead to a slight uptick in the share of sellers who cut prices.”
“As homebuyers’ budgets are increasingly being squeezed by rising interest rates and ongoing inflation, sellers need to make their homes and their prices attractive to attract buyers’ attention,” she said. I have.”
Both pending sales and mortgage applications fell sharply last month from a year ago, but part of that is seasonal.
Redfin said sellers were also reluctant to enter the market. Both new listings and total inventories of homes for sale decreased.
The seller’s market, albeit slowing, remains historically strong. Redfin reports that 24% of his contracted homes were on the market and he accepted the offer within a week, and 35% closed his contract within two weeks.
redfins Full market updates are online.
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