August housing data showed early signs of sellers beginning to compete for buyers, according to the Realtor.com Monthly Housing Report. As inventory and new listings continued to improve in August, the rate of sellers making price adjustments has begun to approach more normal levels.
U.S. housing inventory declined 25.8% year-over-year in August, an improvement over last month (-33.5%). New listings were up 4.3% from last year as new sellers continued to list entry-level homes in more affordable price ranges. Additionally, the share of sellers who made listing price adjustments grew 0.7% year-over-year to 17.3% of active inventory – the highest share in 21 months and closer to typical 2016-2019 levels.
In the greater Phoenix metro area, the median listing price for a home is $475,000, which is a 14.5% year-over-year increase, while active listings are down 16.7% and new listings are up by 6.3%.
“Low mortgage rates have motivated home-buyers to endure this year’s challenging market and now some buyers are starting to see their persistence pay off,” said Realtor.com® Chief Economist Danielle Hale. “This month, new sellers added more affordable entry-level homes to the market compared to last year, while others began adjusting listing prices to better compete with an uptick in inventory. It’s still a strong seller’s market, with homes selling quickly at record-high prices. But now a home priced well and in good condition may see two or three bids compared to 10 last year. For sellers not seeing as many offers, it may be worth revisiting pricing strategies as buyers continue searching for homes that fit their budgets.”
Read the full report here.