As housing inventory climbs and demand cools, house hunters are finding more room to negotiate on price.
New listings rose 0.4 percent from a week earlier during the four weeks ending Aug. 23, reaching their highest level since April, according to a Redfin report. The total number of homes for sale rose 0.5 percent over the same period to its highest level since May, while pending home sales fell 1.1 percent to a six-month low.
The median U.S. home-sale price rose 1.9 percent year over year to more than $400,000, Redfin reported. The weekly average mortgage rate stood at 6.65 percent, down from a peak of 6.69 percent two weeks earlier but near the highest level in 13 months.
Where homebuyers gain the most leverage
Rising inventory paired with softer demand has created buyer’s-market conditions in parts of the country, led by Miami, Nashville and much of Texas, according to Redfin. A separate Redfin analysis identified late August and early September as prime windows for buyers to negotiate deals in 11 metro areas, including much of California, Seattle and two New York City suburbs.
Chen Zhao
“Buyers have an opportunity to get a deal done before the market potentially picks back up after Labor Day,” said Chen Zhao, Redfin’s head of economics research, in the report. “House hunters should consider homes that have been listed for several weeks; sellers of those homes may be willing to accept an offer under asking price, provide concessions like a mortgage-rate buydown or make repairs based on an inspection.”
Zhao added that sellers should avoid pricing homes based on comparable sales from a year or two ago, noting that accurate pricing from the outset can determine whether a home attracts a serious buyer or sits on the market.
By the numbers
The numbers below show where homebuyers have gained leverage most clearly, according to Redfin’s latest data.
- Median sale price: $400,649, up 1.9 percent year over year
- Pending sales: 307,830, down 3.1 percent year over year and 1.1 percent week over week — lowest since February
- New listings: 376,235, up 6 percent year over year and 0.4 percent week over week — highest since April
- Active listings: 1,504,085, up 1.6 percent year over year and 0.5 percent week over week
- Months of supply: 3.8, up from 3.7 (4-5 months is considered balanced)
- Median days on market: 44, unchanged year over year
Metros with the largest year-over-year price gains were West Palm Beach, Florida (10.2 percent), Newark, New Jersey (8.9 percent) and Pittsburgh (7.9 percent), Redfin found. Seattle posted the steepest price decline at 4.6 percent, followed by Austin, Texas (3.7 percent).
