Seller Expectations Vs. Market Conditions

In August, home sales decreased by 2.4 percent, inventory was down 3.4 percent, and home sale prices grew 4.7 percent over the past year, according to the latest Redfin data.

The median home-sale price in August was $300,900, and the price growth rate has declined six months in a row to a four-year low. Meanwhile, the pace of sales remains steady, though some of the data belies easing competition: the share of homes sold over the asking price dropped 1.4 percent year-over-year to 23.6 percent. “While sale prices moderate, new listing prices keep accelerating,” says Redfin senior economist Taylor Marr. “This mismatch between seller expectations and reality is fueling an increase in price drops in metros across the country.”

Redfin has been closely tracking a market shift in San Jose, California, Seattle, and Portland, Oregon, over the past three months. The trends of increasing inventory and declining sales we reported in June and July intensified in August. In San Jose and Seattle, the supply of homes was up nearly 50 percent year over year. In Portland, inventory increased 25 percent. The increase in inventory is the combination of more people putting their homes on the market as fewer buyers are stepping up to purchase. San Jose, Seattle and Portland saw respective sales declines of 16 percent, 19 percent and 6 percent.

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