Home sales

Home sales market cools down because buyers no longer feel rushed: Redfin

Indicators continue to show that the housing market is cooling, but at the same time, median selling prices and asking prices are up from the same week last year, Redfin reported.

The share of homes for sale for which the seller lowered the list price rose to 4.9%, making it the 15th consecutive week that this measure has increased. Homes are also staying on the market a bit longer – an average of 17 days – compared to the all-time low of 15 days recorded for four weeks in end of June and July. But that’s down from 35 days a year earlier. These are among the indicators showing that buyers are no longer feeling rushed to make a purchase.

“Although the market still seems tight and competitive, the number of homes for sale continues to increase as more homes are listed,” said Daryl Fairweather, chief economist at Redfin, in a press release. . “These home sellers are adjusting their price expectations or seeing their homes stay on the market.”

However, the median home selling price has increased 17% year on year at $ 362,642 for the four week period ended August 8. The median asking price for a newly listed property also increased, by 11% from the same period in 2020, to $ 355,389.

More than half of those sold during the period, 53%, were above the list price, up from 30% a year earlier.

Still, the median listing price is down 1.6% from the all-time high set in the four-week period ending June 27, and the lowest since early May, Redfin said.

While new listings were only up 0.2% from a year ago, Redfin attributed this to the normal seasonality of the home sales calendar. In fact, registrations are down 9% from this year’s peak in the four-week period ended June 27.

In addition, half of homes with a contract saw the offer accepted within the first two weeks of listing, well above the rate of 44% in the same period a year ago. This is a decrease of 7 percentage points from this year’s high point in the four-week period ending March 28.

Positive indicators show that there will be more balance between buyers and sellers in the near future.

“There could be even more listings on the market because mortgage abstention ends and owners with missed payments decide to sell, ”Fairweather said. “And mortgage rates remain near all-time lows with no sign of an increase on the horizon.

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