An increase in home listings and slowing sales put pressure on sellers
The housing market saw an influx of new listings in August, offering buyers more leverage as sellers face increased competition, new data from RE/MAX showed.
New listings in August 2024 rose 1.6% compared to July and were up 7.9% from the same period last year. This influx of new homes on the market is easing pressure on buyers, making negotiations more favorable for them.
Listings have been consistently higher year-over-year in seven of the first eight months of 2024. The trend continued in August, with inventory up 2.4% from July and a significant 37.6% from August 2023.
"While we saw a slight dip in sales month-over-month, the market continues to show resilience with some year-over-year price growth," RE/MAX president Amy Lessinger said in the housing report. "The rise in new listings signals that more homeowners are recognizing the value of listing in today's environment. Buyers and sellers alike can find opportunity, especially with a steady flow of homes entering the market."
In Phoenix, new listings surged 25% annually. RE/MAX Signature broker/owner Christy Walker said this influx is putting pressure on sellers and giving buyers more room to negotiate. She added that buyers now have the upper hand, especially in negotiations around repairs and terms, thanks to more homes coming onto the market.
"I believe the slightly lower mortgage rates motivated home sellers who previously felt they were rate-locked,” Walker said. “With an increase in homes to choose from, buyers have an advantage: negotiations. Negotiations are more important than ever since many buyers can walk away if repairs or terms are not to their liking since they know there are many more homes coming on the market to choose from."
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Despite the increase in listings, home sales dropped 3.3% from July 2024 and 3.8% from August 2023, signaling a more cautious market. The median sales price decreased for the second month in a row, falling to $440,000 in August – 1.1% lower than July but still 3.5% higher than the $425,000 median recorded in August 2023.
Homes are staying on the market longer, with the average days on market rising to 38, up two days from July and five days from the same period last year. The months' supply of inventory also grew to 2.4, an increase from both July and last year, suggesting a more balanced market compared to the tight conditions of previous years.
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