Redfin: Balance Returning to Housing Market As Demand Moderates

The share of homes for sale with a price drop rose for the 15th consecutive week to 4.9%, according to a new report from Redfin, the technology-powered real estate brokerage.

Home sellers are also beginning to notice that the market is no longer heating up, and buyers are seeing homes stay on the market a little longer — a median 17 days — as more homeowners are listing their homes, and at more realistic prices.

Unless otherwise noted, Redfin’s data covers the four-week period ending August 8, 2021. Its housing market data goes back through 2012.

The report said the median home-sale price increased 17% year over year to $362,642, a record high. Asking prices of newly listed homes were up 11% from the same time a year ago to a median of $355,389, but that is down 1.6% from the all-time high set during the four-week period ending June 27, and the lowest since early May.

Pending home sales were up 5% year over year, the smallest increase since the four-week period ending June 28, 2020. Pending sales were down 10% from their 2021 peak during the four-week period ending May 30, a faster fall than the 5% decrease over the same period in 2019.

New listings of homes for sale were up 0.2% from a year earlier. The number of homes being listed is in a typical seasonal decline, down 9% from the 2021 peak during the four-week period ending June 27, compared to a 10% decline over the same period in 2019.

Active listings (the number of homes listed for sale at any point during the period) fell 25% from 2020 —the smallest decline since the four-week period ending December 6, 2020 — and have climbed 15% since their 2021 low during the four week period ending March 7.

Asking prices have eased back to where they were in May, and while they are still being bid up half of the time, homes are selling for less of a premium above list price than they were last month. Overall, the market is becoming more balanced and following typical seasonal trends. The scales are still tipped in favor of sellers, but not as dramatically as they were in the spring.

"For the first time in over a year, homebuyers don't need to feel rushed," said Redfin Chief Economist Daryl Fairweather. "Although the market still feels tight and competitive, the number of homes for sale keeps creeping up as more homes are listed. Those home-sellers are adjusting their price expectations or seeing their homes sit on the market. There could be even more listings coming on the market as mortgage forbearance ends and homeowners with missed payments decide to sell. And mortgage rates remain near all-time lows with no signs of an increase on the horizon."

To view the full report, including charts and methodology, click here.