The summer seller’s market is started to swing a little more in favor of buyers as of August, according to the research from realtor.com looking at the number for the first three weeks of August.
A combination of market volatility pressuring rates and seasonal slowdown looks to be serving as an advantage to buyers as summer winds down, says Jonathan Smoke, chief economist for realtor.com.
August data remains positive with regard to overall housing health as both demand and supply continue to grow.
According to realtor.com’s Advance Read of August Trends, which draws on residential inventory and demand trends over the first three weeks of the month, the national median list price is $233,000, up 8% year-over-year and virtually flat over July, demonstrating a continued positive trend in home prices.
The median “days on market” is down 6% year-over-year and up 6% month-over-month at 75 days, which shows the season is naturally shifting to favor buyers as inventory moves more slowly than in spring and summer.
“This year we are seeing inventory continue to grow in August, and while overall demand is strong, the trend in median days on market is suggesting that the market is finding more of a balance,” Smoke says. “This bodes well for would-be buyers who have been discouraged by the inability to find a home to buy this spring and summer.”
The recent stock market correction could offer benefits to prospective buyers, Smoke says.
“A temporary drop in demand by those negatively affected by stock market instability might be just what strained would-be buyers need to gain the advantage in a market that has given sellers the upper hand so far this year,” says Smoke, adding that postponement by the Fed due to the market correction could extend accessibility of attractively low mortgage rates.
Click to enlarge
These markets receive 1.8 to 3 times the number of views per listing compared to the national average. These markets are seeing inventory move 29 to 48 days more quickly than the rest of the U.S. They have also seen days on market drop by a combined average of 13% year over year.