By Aarthi Swaminathan
The number of homes for sale has also increased by more than 25%, according to a new report from Realtor.com
For the first time in a long time, homes aren’t flying off the shelves and listing prices are dropping, according to Realtor.com.
In its August monthly report, the company noted three big changes in the U.S. housing market: Homes stayed on the market longer for the first time in two years, the number of homes for sale increased by more than 25 % and on-sale prices are down sharply from the previous month.
“Home buyers are tightening their purse strings,” said Danielle Hale, chief economist at Realtor.com. “The housing market is starting to find a better balance between buyer friendliness and still favorable selling conditions.”
(Realtor.com is operated by News Corp subsidiary Move Inc. and MarketWatch is a unit of Dow Jones, which is also a News Corp subsidiary.)
While the typical American home is still selling much faster than before the pandemic, the pace has slowed for the first time in two years, since June 2020.
Listings typically spend five more days on the market in August, at 42 days, compared to 37 days last year. Between 2017 and 2019, they moved 22 days slower.
The slowdown was most felt in Austin, Texas, Raleigh, North Carolina and Riverside, California.
The inventory of homes for sale also rose 26.6% in August, compared to a year ago. This despite the reduced number of sellers entering the market.
The West was an undisputed leader in enrollment, followed by the South and, to a much lesser extent, the Midwest.
Registrations are also going down in price.
One in five homes saw a drop in price, and the median listing price fell 14.3% year-over-year, from $449,000 to $435,000. The median listing price peaked in June at $450,000.
The cities with the highest share of listings receiving a price reduction are Phoenix, Arizona, Austin, Texas, and Las Vegas, Nevada.
Do you have ideas on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at [email protected]
(END) Dow Jones Newswire
Copyright (c) 2022 Dow Jones & Company, Inc.