Press release
Realtor.com® August Housing Report: Home Prices Tick Up After Two Months of Declines
In August, active inventory shrank compared to last year (-7.9%), despite an unusual increase from July in newly listed homes, signaling a potential return of
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[{"type":"text","content":"In August, active inventory shrank compared to last year (-7.9%), despite an unusual increase from July in newly listed homes, signaling a potential return of seller activity heading into fall\nSANTA CLARA, Calif., Aug. 31, 2023 /PRNewswire/ -- Following two months of year-over-year declines, home prices rose in August (+0.7%) as the number of homes on the market decreased for the second month in a row, down -7.9% year-over-year, according to the Realtor.com® August Monthly Housing Trends Report released today. Active inventory remained -47.8% below typical 2017 to 2019 levels, although an unseasonable increase in newly listed homes from July to August (+3.5%) this year provides more options for home shoppers as the fall buying season approaches.\n\"While the uptick in new listings is good news for home shoppers, inventory remains persistently low, even with record-high mortgage rates putting a damper on demand,\" said Danielle Hale, Chief Economist for Realtor.com®. \"The inventory crunch continues to put upward pressure on home prices, amplifying affordability concerns and shutting some potential buyers out of the market. However, we anticipate mortgage rates will gradually ease through the end of the year and, despite this month's bump in home prices, we'll be unlikely to see a new price peak this year.\"\nWhat it means for homebuyers, sellers, and the housing marketAlthough home sellers were less active in August compared to last year, the increase in newly listed homes for sale from July to August creates a nice boost for shoppers heading into fall, which is typically the best time to buy a home. Homeowners who have been on the fence about selling will likely find eager buyers looking for fresh listings.\n\"As fall buying activity heats up, the newly available homes for sale aren't likely to remain on the market long, so sellers and hopeful homebuyers will need to be prepared to move quickly,\" said Realtor.com® Executive News Editor Clare Trapasso. \"Home shoppers can save searches on Realtor.com® to receive real-time alerts, receive mortgage pre-approvals, and pore over their budgets to determine what they can realistically afford with today's higher mortgage rates.\"\nAffordability remains a significant concern. Although sales of new homes are on the rise, construction activity isn't sufficiently robust to offset the inv...