Per Zillow, the typical U.S. home value climbed 0.2% from July to August –
a marked cooldown after red-hot monthly appreciation in the previous three
months. The nation’s typical home value has reached another all-time high,
and stands 1.3% higher than last August.
After housing market demand and activity peaked for the year in May and
June, conditions have loosened in the later phase of summer. Not only did
price growth decelerate, but closed-sales data from July showed fewer
homes selling above their list price (40.4%, vs. 41.5% in June).
Listing data in August showed a continued rise in the share of listings with
price cuts, up to 23.4% (vs. 21.8% in July), while listings in August took 13
days to go pending (vs. 12 in July, but vs. 15 days a year ago). Sales
activity stepped down as well: there were 18.9% fewer newly pending
listings in August than last year, v.s a 14.5% year-over-year dip in July.
Maybe most importantly for market watchers: New listings actually
increased a little (4.0%) from July to August, registering a mere 12.7%
year-over-year decline vs. a 25.6% year-over-year decline in July. This
unusual late-summer boost to supply should help to ease market conditions
even more than the seasonal cooldown expected at this time of year. Total
inventory remains low, but it bears watching to see if this marks the start of
some modest relief for the bone-dry listings drought that began in earnest
in July 2022.
Per the National Association of Home Builders, persistently high mortgage
rates above 7% continue to erode builder confidence, as sentiment levels
have dropped below the key break-even measure of 50 for the first time in
five months.
Builder confidence in the market for newly built single-family homes in
September fell five points to 45, according to the National Association of
Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released
today. This follows a six-point drop in August.
We have a slowing in the rate of house price increase, with higher
mortgage rates, a slight increase in homes listed and a decrease in builder
confidence. This is an ever-changing environment for home owners as well
as home buyers, making it really hard to decide what is the right action for
you. I would love to talk to you about your unique situation and see what is
truly right for you.
Mary Cockburn
505-639-2090
MaryCockburn.Realtor@gmail.com
