While earlier reports from Fannie Mae suggested consumer sentiment during August grew more cautious concerning buying a home, Redfin says home price gains for that month show that the seller’s market is back.
However, there are aspects that may be keeping the market from being a “hot seller’s market.”
“Although home-price gains remained relatively modest in August, supply and demand are now heading back toward sellers' favor," Redfin Chief Economist Daryl Fairweather said. "Home sales are accelerating as buyers eat into a diminishing number of homes for sale.”
While these trends are to be expected given that mortgage rates have been declining since late last year, global economic uncertainty and talk of a looming recession in the U.S. are staving off many aspects of hot seller's market, Fairweather said.
According to Redfin’s report, home sales spiked 10.8% from last year, marking the largest annual increase since 2018. However, the supply of homes for sale fell 5.7% year over year, representing the biggest decline since April 2018.
