If you've considered buying a home over the past few years, you've likely faced two major challenges: rising asking prices and a limited number of homes on the market.
This summer, those obstacles are beginning to ease in many areas. Asking prices are becoming more competitive, and buyers have more homes to choose from. Here's a closer look at what's changing and what it could mean for your home search.
Sellers Are Pricing To Attract Buyers
According to Realtor.com, the national median asking price fell to $430,000 in June, nearly $11,000 lower than it was a year earlier (see graph below).
According to the same Realtor.com report, this marks the eighth straight month that the national median asking price has been lower than it was a year earlier.
While lower asking prices may sound concerning at first, they don't point to a housing market crash. These are asking prices, not final sale prices. Instead, they show that sellers are adjusting to current market conditions and pricing their homes more competitively to attract buyers. That's a healthy and expected part of a balanced market. As Danielle Hale, Chief Economist at Realtor.com, explains:
Sellers are reading market conditions and are pricing accordingly from the start rather than listing high and cutting later, and buyers are taking note and making bids. This is a welcome sign that we are in a functioning market.
Asking prices were never expected to keep rising indefinitely. Instead, they're beginning to align more closely with what today's buyers can realistically afford. That's a sign of a healthier market, with sellers adjusting their pricing expectations to match current conditions.
More Homes Are Available Now
If you've spent the past few years seeing homes sell before you even had the chance to schedule a showing, you'll appreciate this change.
Housing inventory is finally improving. According to Realtor.com, the number of homes for sale in June reached its highest level for the month in the past three years (see graph below).
While inventory hasn't fully returned to pre-pandemic levels everywhere, it's moving in the right direction. As the graph shows, we're still below the levels seen from 2017 to 2019, but many markets now have more available homes than they've had in years. And that's good news for buyers.
With more choices on the market, you don't have to rush into making an offer just to stay competitive. You'll have a better chance of finding a home that truly fits your needs instead of settling for what's available. Plus, increased inventory gives you more negotiating power, putting you in a stronger position than buyers were even a year ago.
Why This Is Encouraging if You’re Buying Your First Home
These market trends are especially encouraging for first-time buyers looking for more affordable homes. As Mischa Fisher, Chief Economist at Zillow, explains:
The lowest price tiers are exhibiting some softness in terms of price, they also had the most listing-activity growth, the first time since 2022 that's been the case.
Whether you're buying your first home or planning your next move, you'll likely find more options on the market along with a little more flexibility on price.
Bottom Line
If limited inventory or affordability concerns have been holding you back from buying a home, now may be a great time to take another look. If you're ready to explore what's available in our local market, let's connect.
