New for-sale listings fell 15% in the four weeks ending August 21, the biggest annual decline since the start of the pandemic, according to Redfin. As demand falls and housing prices come down from record highs, sellers are becoming more hesitant to list their homes, and with less supply, buyers are beginning to lose their bargaining power.
The supply of for-sale homes fell 0.6% from the previous four-week period, and sellers choosing to list their properties are being forced to price in line with softening demand from budget-conscious buyers. The median asking price of newly listed homes dropped 5% from May’s record high, while sale prices fell 6% from the record high set in June.
“Sellers are coming to terms with the fact that volatile mortgage rates have dampened demand. Some sellers are pricing lower, and some homeowners are staying put because they’re nervous they won’t get a good offer or they’re hesitant to give up their low mortgage rate,” said Redfin Economics Research Lead Chen Zhao. “Because the number of homes for sale is no longer rising, buyers’ newfound bargaining power is reaching its limit.”