Sellers enter market even if it means adjusting their prices
The US housing market is witnessing an uptick in inventory as sellers begin to adjust their pricing expectations downward.
A report from Bloomberg cited data from Zillow indicating that listings of existing homes rose 12% in February compared to the same period last year. This was accompanied by a trend where roughly 20% of these listings experienced price reductions.
The increase in available listings was particularly pronounced in several Southern metros that saw a significant appreciation in housing values during the pandemic, according to Zillow.
Waiting out rate cuts “not worth it” for some sellers
While the market remains competitive, with homes typically going under contract within 17 days of listing, the slight increase in inventory comes as good news for prospective homebuyers that have been navigating a market characterized by limited supply.
As borrowing costs remain high, many homeowners who previously secured favorable mortgage rates have been hesitant to enter the market as sellers.
But the recent uptick in listings suggests that some homeowners are now considering selling their homes, even if it means accepting prices slightly below recent peaks.
Zillow’s analysis noted that typical home values have seen a 41% increase nationwide since the onset of the pandemic. This means that most sellers would still profit from their initial purchase, despite potential price adjustments.
“For many households with record-high equity, waiting out potentially lower rates later in the year may not be worth it,” Skylar Olsen, chief economist at Zillow, said via Bloomberg.
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