More Homes, Better Prices: A Buyer’s Summer

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If you’ve thought about buying a home in the past few years, you may have run into two frustrations: asking prices that kept climbing and too few homes to choose from.

In many places, both sticking points are letting up this summer, with lower asking prices and more homes for sale. Let’s look at the trends, and what they mean for your search.

Sellers Are Pricing To Attract Buyers

According to Realtor.com, the national median asking price was $430,000 in June, nearly $11,000 under what it was the year before (see graph below):

That’s the eighth month in a row that the typical asking price has dipped below where they were the previous year, according to the same Realtor.com report.

And while falling prices can sound worrying, this isn’t a sign of an impending crash. We’re talking about asking prices, not sold prices. This is a sign that today’s sellers are meeting the market where it is and pricing to draw buyers. And that’s actually something normal we’d expect from the market. As Danielle Hale, Chief Economist at Realtor.com, puts it:

“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 going to climb forever – now they're just settling closer to what buyers can actually pay. That signals a healthier market, and sellers re-adjusting their expectations. 

More Homes Are Available Now

If you’ve spent the past few years watching homes disappear before you could even schedule a tour, this is for you.

Supply is starting to catch up. According to Realtor.com, the number of homes listed for sale in June was the highestJune number we’ve seen in three years (see graph below):

This means more options for you and less competition for each one.

Now, supply is not back to normal everywhere. As you can see, we’re still down from where we were back in 2017-2019. But in many places, it’s better than it’s been in a while. Here’s how that helps you.

You don’t have to rush an offer just to stay in the running, and you have better odds of finding and landing the right home, not just the one that’s available. Plus, you’ll have more room to negotiate, so you’re searching from a stronger position than buyers had even a year ago.

Why This Is Encouraging if You’re Buying Your First Home

For first-time buyers looking for lower-priced homes, these trends line up especially well. 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.”

So, if you’re searching for your first place or your next house, there's a little more to choose from and a little more give on price.

Bottom Line

If a tight budget or a thin selection has kept you from buying a home, now might be the time to restart your search.

Ready to see what’s available here? Let’s connect.

The “Take It or Leave It” Attitude Is Fading from the Market – What That Means for You

 

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Negotiations are back. More buyers are asking for better deals, and more sellers are giving them. Builders are throwing in extras, too. 

That’s why whether you’re buying or selling today, there are two terms you’ll hear a lot: concession and incentive.

• A concession is something a seller agrees to during negotiations to get a deal done.

• An incentive is a perk a builder (or a seller) advertises upfront to attract buyers.

Let’s run through what you need to know about both and how they could play a role in your move.

More Sellers Are Agreeing to Concessions

Almost half (46%) of homeowners who sold recently gave the buyer a concession, according to Redfin. That’s the highest share on record for this time of year. And roughly 1 in 7 (16%) sellers went a step further, cutting their asking price and offering a concession on top (see chart below):

 

So, what kind of concessions are we talking about?

A seller might cover part of your closing costs, take care of a repair, or offer a credit that trims your upfront costs. It’s how they keep a deal on track when buyers have more options to choose from – and homeowners aren’t the only ones compromising.

Builders Are Cutting Prices, Too

Newly built homes are seeing the same push and pull. According to the National Association of Home Builders(NAHB), 62% of builders are offering incentives right now. And about 35% are cutting prices outright (see chart below):

Those incentives often look like:

• Price adjustments

• Mortgage rate buydowns

• Free upgrades, like nicer finishes or appliances

Danielle Hale, Chief Economist at Realtor.com, explains why:

"New construction has been one of the steadiest parts of the housing market over the past few years, but builders are clearly responding to today's affordability pressures and higher levels of existing-home inventory."

Even builders, who many people think rarely negotiate, are competing on price and perks. They have been for over a year now. The same data shows this is the 15th straight month where more than 60% of builders have offered incentives to sweeten the deal. And that’s significant.

What This Means for Your Move

If you're buying, this is a good time to ask. Whether you have your eye on an existing house or a newly built home, there's a chance the seller or builder will meet you partway on price, terms, or both.

If you're selling, expect buyers to ask. Even builders of brand-new homes are making concessions more often than not right now. Holding firm on every term could mean more time on the market, or a lost sale altogether.

Bottom Line

Sellers and builders are both giving buyers more to work with this year. Want to know what’s realistic to expect in concessions and incentives in our market? Let’s connect.