Housing Market Shifts: Sellers Feel the Pinch as Demand Slows

The national median home listing price rose slightly in July to $439,450, but the country's housing market is experiencing a shift, with some metro areas seeing a decline in listing prices. As demand slows, the power dynamic between buyers and sellers is reversing, with buyers now having more leverage in negotiations. Sellers are feeling the pressure, with many opting to lower their asking prices or remove their homes from the market rather than accept low-ball offers.

Key Takeaways:

• The national median home listing price rose to $439,450 in July, but some metro areas saw a decline in listing prices, including Austin (-4.9%), Miami (-4.7%), Chicago (-4.4%), Los Angeles (-4.2%), and Denver (-4%).
• The most a homebuyer who earns the median U.S. household income can afford to spend on a home is $298,000, according to Realtor.com, assuming a 20% down payment and a 30-year mortgage at a fixed rate of 6.74%.
• 7 out of 10 home shoppers are priced out of the market, with homes lingering on the market as sales slow.
• Active listings have increased nearly 25% from a year earlier, climbing for the 21st month in a row, according to Realtor.com.
• The inventory of homes for sale across the U.S. has increased gradually, bringing supply and demand more into balance.
• In some markets, such as Texas and Florida, home inventory has climbed sharply, partly due to high levels of new home construction.
• Sellers who can afford to wait are often opting to pull their listing rather than be pressured into coming down on price.

Statistics:

• National median home listing price: $439,450 (July)
• Most a homebuyer can afford to spend on a home: $298,000 (according to Realtor.com, assuming a 20% down payment and a 30-year mortgage at a fixed rate of 6.74%)
• Homes priced out of the market: 7 out of 10 (based on median household income)
• Active listings: up nearly 25% from a year earlier (Realtor.com)
• Inventory of homes for sale: increased gradually, bringing supply and demand more into balance
• New home construction: driving home inventory increases in states such as Texas and Florida
• Sellers waiting on the market: often opting to pull listing rather than come down on price

Sources:

• Realtor.com, citing the national median home listing price and the amount a homebuyer can afford to spend on a home.
• Realtor.com, citing the increase in active listings and the gradual increase in inventory of homes for sale.
• Doug McCormick, retired business owner, regarding his experience listing and selling his home.
• Annie Foushee, agent with Redfin in Denver, regarding the challenges of selling homes in the current market.
• Lindsay Olesberg, 59, Bible teacher, regarding her experience selling and buying a home in New Mexico and Texas.
• Tammy Tullis, finance consultant, regarding her experience listing and selling her home in Miami.
• Federal Reserve, regarding interest rates and their potential impact on the housing market.