Prospective buyers have been afforded more time to mull over their home-buying decisions over the past few weeks as August marked the first year-over-year increase in time on the market in 26 months, according to a monthly housing trend report from realtor.com®.
In another positive development for buyers, there were over a quarter more active listings to choose from than this time last year, according to the report.
These trends are just the latest indicators that the housing market is resetting from the pandemic years of feverish buyer demand that far outstripped supply.
- In August, a typical home spent 42 days on market, five days longer than last year and the first increase since June 2020, but still 22 days faster than in 2017-2019, on average.
- Time on market was lower across the 50 largest U.S. metros (37 days, on average) relative to the national median, but also slowed from the August 2021 pace in the same markets.
- On a typical day in August, the U.S. inventory of active listings grew 26.6% year-over-year, just shy of last month’s record-fast pace (30.7%).
- Nationwide, 19.4% of active listings had their price reduced, a higher share than in August 2021 (11.0%).
- Miami and Richmond were the only two markets where time on market declined compared to last year.
“For many of today’s buyers, the uptick in for-sale home options is taking away the sense of urgency that they felt during the past two years, when inventory was scarce. As a result of this shift coupled with higher mortgage rates, competition continued to cool in August, with listing price trends indicating that home shoppers are tightening their purse strings,” said Danielle Hale, chief economist for realtor.com®.
“As we soak up the last days of summer, the housing market is beginning to find more balance between buyer-friendliness and still favorable selling conditions,” added Hale. “Location also matters; our 2022 Hottest ZIP Codes show that competition for homes remains fierce in many markets in the Northeast, which was also the only region where inventory declined from 2021 levels in August. Regardless of where you live, it’s important to rate-proof your budget by contingency planning for various monthly housing cost scenarios, as mortgage rates will likely continue to fluctuate through end-of-year.”
Read the full report here.