More Inventory, More Room to Negotiate This Fall
Home sales slowed in August, with existing-home sales down 2% from July after a 1.7% drop the month before, according to the National Association of Realtors. Mortgage rates averaging 6.67% for the month, combined with prices that keep climbing, appear to be keeping some buyers on the sidelines a little longer.
Still, prices are not backing down. The median existing-home price nationwide rose 1.6% year over year in August to $429,100, and most homeowners continue to build equity even as sales activity softens.
The upside for buyers is choice. Housing inventory climbed 3.2% from July and roughly 6% year over year, pushing the national total above 1.6 million units for the first time since November 2019. That translates to 4.9 months of supply, the highest level in more than a decade, and it is giving buyers real leverage at the negotiating table.
Only 16% of homes sold above list price in August, down from 20% a year earlier. Price reductions are becoming more common too, showing up on about 20% of active listings nationally, with Denver, Portland, and Salt Lake City seeing the steepest cuts.
Sellers are also staying the course rather than pulling listings, with homes spending a median of 31 days on the market in August.
The improving conditions appear to be drawing first-time buyers back in. Their share of existing-home sales rose to 30% in August, up from 28% a year earlier, helped along by wage growth of 3.1% and more than 640,000 net new jobs added since the start of the year.
Sales patterns varied by region in August. The Northeast and Midwest both saw sales pull back more sharply month over month, while the West held steady. Prices continued to climb in the Northeast, Midwest, and South, even as the West saw a slight dip.
More inventory, more price flexibility, and more first-time buyers stepping back in all point to a market that could feel noticeably different this fall than it did over the summer. For buyers who have been waiting for more options, this could be the moment to start looking again.
Whether you are a buyer hoping to find more room to negotiate, a seller weighing whether to adjust your price, or simply curious how these shifts are showing up in your neighborhood, reach out anytime. I am always happy to walk you through your options!
