Active buyers should be paying close attention to the time frame in considering sales figures and best times to buy, said Danielle Hale, chief economist for realtor.com, recently.
The housing market is pivoting after a few years of red-hot demand, and moving in a more buyer-friendly direction, said Hale, although “buyers in today’s market may still face meaningful affordability challenges,” as the typical home listing price remains near a record high, at $449,000 in July, and weekly data shows that double-digit growth continues.
According to her analysis, second quarter data from July 2022, showed that homeownership rates increased from a year ago both overall and for nearly every age and racial/ethnic group.
A very strong labor market that is pushing up wages and moving workers in a more flexible direction, is a big factor, said Hale.
Workers are gaining the ability to negotiate remote or hybrid working arrangements, even as many return to workplaces and offices.
But with flexible work arrangements still available, home shoppers are able to consider homes further afield of the office, in the more affordable suburbs or even moving to a less expensive state to deal with cost-of-living increases.
In terms of specific data, according to realtor.com, the US median listing price grew by 15.5% over last year, up from last year by double-digits for a 34th week.
It is the second consecutive week of deceleration, an early but possible harbinger of change in the market. A larger deceleration trend is evident in monthly data, said the analysis, which in July noted the second consecutive month of slowing price growth.
But the measured year-over-year advance in July–16.6%–remains well above typical.
New listings were again down 8% from one year ago, in a fifth straight week of year-over-year declines in the number of new listings coming up for sale. This may suggest that fewer homeowners are eager to list homes for sale in this “rebalancing” market, said Hale.
Many indicators signal that the housing adjustment is already underway, and sellers appear to be getting the message, said Hale.
If sellers hesitate amid a fear of acknowledging that now is a good time to sell, that could slow the housing refresh, and it may take longer for balance to return, she noted. Homeowners should also keep in mind that with home equity at a record high, they are likely in a fairly strong position.
