August Home Prices Fell at the Fastest Rate in Six Years

After soaring to a peak high of $450,000 in June, home prices are finally beginning to fall, giving long-delayed homebuyers an upper hand when it comes to negotiation in a cooling seller’s market. National prices dropped from $449,000 in July to $435,000 in August, the largest month-to-month decline in data history dating back to 2016, according to a new report by Realtor.com. 

August home prices are still up 14.2% year-over-year, but a seasonal slowdown paired with a market reset will cause prices to fall at a more rapid pace in the final months of 2022. 

“It’s the time of year when prices typically slow,” explains Realtor.com Chief Economist Danielle Hale. “We usually see a peak in median listing prices in June, and then prices come down as we move toward the end of the year.”

​​“This year, in addition to the usual seasonal cooling, we’re seeing a shift in the balance of supply and demand,” explains Hale. “After years of demand vastly outstripping supply—forcing buyers who wanted to find a home to bid up prices—supply has increased. And that means price growth has cooled.” 

This means home shoppers may gain the upper hand when it comes to negotiation and a final sales price. It may even drive down median list prices further in the coming months and extinguish the red-hot seller’s market once and for all.

Read more