Nearly one in five home sellers lowered their home asking prices in August to attract buyers. As the market rapidly cooled.
The percentage of homes for sale that have lowered their asking price jumped to 19.4% in August. To monthly report by Realtor.com, published Thursday. That number is up from 11% in the same month a year ago.
Realtor.com Chief Economist Daniel Hale said:
After hitting a record high of $450,000 in June, the median national home price for active listings fell to $435,000 in August.
The 3.1% drop from the median July was the biggest month-over-month drop since Realtor.com began tracking the metric in 2016.
The residential real estate market, which hit record highs during the COVID-19 pandemic, has slowed significantly in recent months. Soaring mortgage rates have exacerbated the affordability crisis for future homebuyers, pushing many to the side until things improve.
The average interest rate for a 30-year fixed mortgage was 5.66% as of Thursday, according to Freddie Mac. Mortgage rates are rising steadily as the Federal Reserve tightens monetary policy, putting him nearly 3% higher than a year ago.
While the number of sellers lowering their asking prices increased significantly from last year, a Realtor.com report said the numbers were “close to typical 2017-2019 levels” before the pandemic-era housing boom. ”was something.
The cooldown has lifted inventory levels, alleviating one source of pressure on prospective homebuyers, with active listings up 26.6% in August compared to the same month a year ago.
A typical US home for sale spent 42 days on the market last month. That’s five days up from last year and the year-over-year gain of any kind since June 2020.
“For many of today’s buyers, the increase in housing options for sale has taken away the sense of urgency felt over the past two years when inventory was scarce,” said Hale. Rising mortgage rates are also contributing to the slowdown, she said.
as the post reported Earlier this week, mortgage applications remained at their lowest level in decades. According to the Mortgage Bankers Association, he’s had eight of the past nine weeks his purchase application has been denied.