After a torrent of price increases and mortgage rate hikes, homebuyer demand is falling, and so too are new listings as sellers wait for an increase in market activity to put their houses up for sale. New listings fell 14% year-over-year during the four weeks ending August 14th, but the share of new listings with price cuts has leveled off at its record high, according to Redfin.
Not only are sellers facing less competition as fewer homeowners list their properties, but they’re also aligning their list prices with buyer expectations to avoid price reductions down the line.
“Many homeowners have been reluctant to put their houses up for sale during a market slowdown, which is now holding back inventory growth,” said Deputy Chief Economist Taylor Marr. “That means buyers have fewer homes to choose from and may lose some of their newfound bargaining power, which allows sellers to maintain their list prices instead of having to cut them.”