Are Some Sellers Becoming Reluctant to List?

As the housing market cools off slightly, more sellers are waiting to list their homes.

According to Redfin, new listings dropped 15% from late July until late August, which markets the largest drop since the beginning of the pandemic. Additionally, the median asking price of newly listed homes has fallen as well. The price of a newly listed home has decreased 5% from May’s record high and the median sales price has fallen 6% from June’s record high. However, prices remain higher than a year ago. The median home sale price reached $371,125, which is a 6% year over year increase. The median listing price of a home was $382,475, a 10% year over year increase.

More than one-third (36%) of homes went under contract within two weeks on the market, down 7% year over year, while 24% had accepted an offer within a week of being on the market, down 6% year over year. However, these percentages remained stable throughout the summer. Only 38% of homes sold for over asking, down 12% year over year. Also, 7.7% of homes for sale dropped their price, a record high.

As mortgage rates remain above 5% some buyers are putting their activity on hold. According to the report, the number of people looking for homes for sale on Google fell 16% year over year and showings are down 6% from the start of 2022. Mortgage applications are down 21% from the same time period a year ago. The median monthly mortgage payment at the current rate is $2,305, compared to $1,665 a year prior, when mortgage rates were still below 3%. Homes are on the market for a median of 25 days, four days longer than a year prior.