The housing market is getting cheaper for buyers as an increasing number of new sellers lowered their home's list price during the four-week period ending Aug. 29, Redfin said.
Although asking prices for newly listed homes rose 10% from the same point in time a year ago to a median of $ 354,665, that number is the lowest since late April. Average list prices are also 1.8% below the all-time high reached during the four-week period ended June 27.
"Homes take longer to sell, which gives buyers more time to make informed decisions about whether to make offers," Redfin chief economist Daryl Fairweather said in a press release. "And the fact that more and more sellers are lowering their list prices is a sign that sellers need to be realistic about their price expectations."
A separate report from HouseCanary found that the median single-family home price for the week ended Aug. 27 was $ 381,728, up 7.7% year over year but down 1.9% month-over-month.
"Monthly prices for single family homes have stabilized since May, while closing prices remain marginally higher month-on-month," said Jeremy Sicklick, CEO of HouseCanary, in a press release. "In addition, the price-to-list ratio has fallen slightly since its peak in June, which reinforces our view that house prices, while still remarkably high, are showing signs of cooling."
Redfin, who analyzes data from the multiple listing service on a rolling four-week basis, found the average home purchase price increased 15% over the same period in August 2020 to $ 359,983.
The new listings remained unchanged from last year as they have returned to the typical seasonal sales pattern. These were a weekly average of 95,332 for the past four weeks versus 95,322 a year ago, Redfin said. The number of new entries is down 10% from its high in the four-week period ended June 27.
In HouseCanary's analysis for the week ending August 27, 308,286 net new listings were placed in the market, down 10.7% year over year. That was evident on the lower end of the market, as prices below $ 200,000 fell 18.7%; between $ 200,000 and $ 400,000, offers fell 16.2%; and between $ 400,000 and $ 600,000 the number declined 9.3%.
But at the high end of the market, prices rose 2.4% between $ 600,000 and $ 1 million and 4.7% above $ 1 million.
The average sale-to-list price ratio dropped to 101.5%, according to Redfin. This was 0.7 percentage points less than during the four-week period ending July 11, but 2.3 percentage points more than the previous year.
Selling houses is taking longer, but only marginally compared to the breakneck sales pace of recent months.
The average time from listing to selling in August was 18 days, up from the record low of 15 days in June and July, Redfin said. However, the August average is still much faster than the 33 days it took a year ago.
Almost half of the new entries, 48%, were signed within two weeks and 35% within one week. Each of these measures was 8 percentage points below their respective highs set for the four weeks ending March 28.