Inman News
Zillow’s latest market report revealed a burgeoning seller retreat in August, as new listings dropped 7.3% in 1 month. However, there are still plenty of opportunities for buyers to make a deal
A homeseller market retreat is speeding up, according to Zillow’s latest market report.
New listings declined 7.3 percent from July to August, a percentage that’s atypical for the transition between the summer and fall buying seasons. The portal said slowing sales are behind the decline, as the median list-to-sale timeline extended to 27 days — seven days longer than last year and one day longer than pre-pandemic norms.
Most sellers, the report said, aren’t feeling pressured to make a deal, as they’re enjoying a once-in-a-lifetime mortgage rate and a 46.5 percent increase in home values since February 2020. For those who must sell, Buffalo, New York; Hartford, Connecticut; San Francisco; San Jose, California; and Boston offer the best leverage, as for-sale inventory levels in these areas are still below pre-pandemic trends.
ZHVI data for the top 15 markets
Although homebuyers’ recent market momentum is slowing, Zillow Senior Economist Kara Ng urged buyers who have the cash and patience to weather headwinds not to give up.
Zillow’s Home Value Index registered the second-slowest annual growth of any month since the start of 2018, staying flat at $363,946. That slowdown, the report said, alongside a quarter of active listings undergoing a price cut in August, signals that all isn’t lost for homebuyers.
“Buyers who can afford a home and have been waiting for the right moment should look closely at what’s available now,” Ng said in the report. “Options are on the shelves, even if they’re not all fresh.”
Inventory and price cut trends in the top 15 markets
The South offers the best options for buyers, with homebuilders in Miami, Tampa, Jacksonville, and Austin pushing inventory levels well above pre-pandemic levels. If living in the South isn’t your cup of tea, there are buyer hotspots dotted throughout other regions. Seattle, once a seller’s haven, has transitioned to favoring homebuyers as inventory experiences a double-digit boom.
“Sidelined buyers should revisit their budget; mortgage rates are lower than recent years, and in some markets, sellers are more willing to deal,” she added. “But don’t expect this window of opportunity to stay open indefinitely. Buyers’ leverage is easing as many sellers put their plans to list on hold.”