Decline In US Home Sales; Despite Still Selling Quick, There Are Flexible Prices

Bryan Dijkhuizen

It's getting better

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Note From The Author

The opinion of the author is his own and has no affiliation with the topic that was included. Sources that are used in this article are the following: AP and for information about individuals, he used Wikipedia.

Introduction

The housing market has been in a freefall since the beginning of the year, but it continued its downward trend in July, marking the sixth consecutive month that house sales were lower than the previous month. Homes are becoming more difficult to purchase as a result of sharply increased mortgage rates, increasing inflation, and prices that continue to hover around all-time highs.

Sales in July were down 20.2% compared to the same month in 2017, hitting their lowest level since May 2020, close to the beginning of the epidemic.

Flexible Selling Prices

On average, the sale of homes is proceeding at a breakneck pace, and many properties are still receiving several bids. However, many sellers have found that they are unable to continue to insist that potential purchasers forego significant precautions like a house inspection before the transaction can be finalized. This has forced many sellers to become more flexible with their asking price.

The move does not indicate that the market is now favorable to buyers; in order for that to occur, there would need to be a significant rise in the number of properties available on the market.

Nevertheless, this is a significant shift in the market given that factors such as a lack of available housing, historically low mortgage rates, and surging house prices have worked together in recent years to tilt the housing market in favor of sellers.

“We know that homes are taking longer to sell, sellers are having to price more carefully and are having to adjust if they’re not priced competitively,” said Danielle Hale, chief economist for Realtor.com. “So, it’s moving in a buyer-friendly direction, but I’m not sure it’s quite there yet.”

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