Recent reports indicate a notable change in the housing market, with price gains shrinking in many areas and sellers beginning to reduce prices after a stagnant spring season. For the first time since the early days of the COVID-19 pandemic in 2020, the typical home sold for slightly less than its asking price—0.3% lower—during the four weeks ending June 23. This is a significant shift from last year when homes were generally selling at their list prices.

Despite these adjustments, this data doesn't signal a housing market crash. While most sellers are still listing their homes at higher prices than comparable homes sold a year ago, there is an acknowledgment that the market dynamics have changed.

The S&P Case-Shiller index, a key measure of U.S. home prices, showed a 6.3% increase in home prices in April 2023 compared to April 2022. This trend continued into May, with home prices now 47% higher than they were in early 2020. The median sale price of a home is now five times the median household income, highlighting the significant price growth over the past few years.

An increase in supply is also contributing to the cooling of prices. Total active listings are now 35% higher than they were at this time last year, giving buyers more options and reducing the pressure on prices.

For sellers, this means adjusting expectations and being prepared for a more competitive market. Pricing homes realistically and understanding the current market conditions will be crucial for successful sales in the coming months.

Stay tuned to our blog for more updates and insights into the real estate market trends.