After a torrent of price increases and mortgage rate hikes, homebuyer demand is falling, and so too are new listings as sellers wait for an increase in market activity to put their houses up for sale. New listings fell 14% year-over-year during the four weeks ending August 14th, but the share of new listings with price cuts has leveled off at its record high, according to Redfin.
Not only are sellers facing less competition as fewer homeowners list their properties, but they’re also aligning their list prices with buyer expectations to avoid price reductions down the line.
“Many homeowners have been reluctant to put their houses up for sale during a market slowdown, which is now holding back inventory growth,” said Deputy Chief Economist Taylor Marr. “That means buyers have fewer homes to choose from and may lose some of their newfound bargaining power, which allows sellers to maintain their list prices instead of having to cut them.”
Advertisement
Related Stories
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development
Sustainability
Which Green Building Practices Are Home Builders Using Most?
A recent report reveals which green-building practices are most popular among single-family home builders and remodelers
Market Data + Trends
Single-Family Permits Show Increase in February
Year-to-date ending in February, single-family permits were up in all four regions of the U.S.
