By Aarthi Swaminathan
The number of homes for sale has also increased by more than 25%, a new report by Realtor.com says
For the first time in a long time, homes aren’t flying off the shelves and listing prices are falling, according to Realtor.com.
In its August monthly report, the company noted three big changes in the U.S. housing market: Homes were staying on the market for longer for the first time in two years, the number of homes for sale has increased by more than 25%, and listing prices are falling sharply as compared to the previous month.
“Home shoppers are tightening their purse strings,” said Danielle Hale, chief economist at Realtor.com. “The housing market is beginning to find more balance between buyer-friendliness and still favorable selling conditions.”
(Realtor.com is operated by News Corp subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp.)
While the typical U.S. home is still selling much faster than before the pandemic, the pace has slowed for the first time in two years, since June 2020.
Listings are generally spending five more days on the market this August, at 42 days, versus 37 days last year. Between 2017 and 2019, they moved 22 days slower.
The slowdown was most felt in Austin, Tex., Raleigh, N.C., and Riverside, Calif.
The inventory of homes for sale also rose 26.6% this August, compared to last year. This is despite fewer sellers entering the market.
The West was a clear leader when it came to listings, followed by the South and to a much lesser extent, the Midwest.
Listings are also taking a price cut.
One in five homes had their price reduced, and the median listing price fell 14.3% year-over-year, from $449,000 to $435,000. The median listing price reached a high in June, of $450,000.
The cities with the highest share of listings taking a price cut include Phoenix, Ariz., Austin, Texas, and Las Vegas, Nev.
Got thoughts on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at aarthi@marketwatch.com
-Aarthi Swaminathan
(END) Dow Jones Newswires
09-03-22 1128ET
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