For years, housing experts have kept a close eye on an unrelenting, red-hot market, one which many are now describing as “balanced.” A mid-pandemic seller’s market is shifting into a middle ground where buyers and sellers are negotiating on a more even playing field. Higher mortgage rates are chipping away at buyer demand, and a waning buyer pool is putting pressure on sellers to reduce their asking prices, Realtor.com reports.
Because buyers are making fewer purchases and sellers are becoming less eager to list, active inventory is falling, and homes for sale are spending more time on the market. Home prices are still rising, but a seasonal slowdown could open a window of opportunity for priced-out buyers in the last half of 2022.
Over the past two years, the pace of real estate sales has sped up significantly. Nationally, homes are on the market a median 35 days before getting snapped up. But this rush is waning.
For the week ending Aug. 20, properties spent four extra days on the market compared with this time last year.
“For a fourth week in a row, homes are sitting on the market for a longer time than last year,” adds [Jiayi ] Xu. “As both buyers and sellers adjust to the rebalancing market, expectations shift, reducing the sense of urgency in the market and reinforcing the trend toward longer sale timelines.”
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