The housing market continues to evolve, and the latest data highlights a critical turning point that both buyers and sellers should keep an eye on.
Inventory Levels Hold Steady
Housing market inventory has plateaued at approximately 861,000 single-family homes. This marks a five-year high, signaling more options for buyers than in recent years. However, new listings have flattened at around 67,000 per week, which shows that while homes are on the market, fewer fresh listings are entering the pipeline.
Withdrawals Are Rising
Another important trend is the increase in withdrawals. Withdrawals are trending nearly 50% higher than last year as sellers wait for better conditions before re-listing their properties. This suggests that homeowners are becoming more cautious and are holding out for an improved housing market environment.
Price Pressures Continue
Prices are showing signs of softening. The median pending price sits at $390,000, and price cuts remain elevated at 42%. This is a strong indicator that sellers are adjusting expectations in response to current market conditions. With higher inventory and cautious buyers, sellers are more willing to negotiate.
Key Takeaway: Sellers Growing Cautious
Sellers are increasingly waiting for clearer signals on mortgage rates and demand before making decisions. With inventory plateauing at multi-year highs and prices facing downward pressure, this could be an opportune moment for buyers. If mortgage rates dip closer to the “magic” 6% threshold, more buyers could enter the housing market, increasing competition and driving momentum.
Dave Crosby, Chief Data & Analytics Officer at Compass, steps in for Mike Simonsen to break down what is happening in real time and what it means for the months ahead.
What This Means for Buyers and Sellers
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For Buyers: With more inventory available and prices showing signs of flexibility, this may be a strategic time to explore opportunities, especially before demand picks up again.
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For Sellers: Patience may be key. Monitoring mortgage rates and demand signals could help time a sale for more favorable conditions.
The housing market is always shifting, and right now, the balance between inventory, prices, and mortgage rates is creating a unique moment. Whether you are buying or selling, staying informed will be critical to making smart decisions in the months ahead.
