Press release
Home buyers gain breathing room with late-summer slowdown on the way
Steady demand is keeping the heat turned up, but early signs point to a late-summer seasonal cooldown Houses are spending more time on the market than in the
About this update from Zillow Group, Inc.
[{"type":"text","content":"Steady demand is keeping the heat turned up, but early signs point to a late-summer seasonal cooldown \nHouses are spending more time on the market than in the spring, but still half as long as in 2019. Buyers still have few choices for existing homes as inventory reached new record lows for July.Home values rose from June to July in every major metro area except Austin.SEATTLE, Aug. 10, 2023 /PRNewswire/ -- A warmer-than-normal housing market is showing signs of a typical late-summer seasonal cooldown, according to the latest Zillow® market report.1 Competition is still strong, with inventory hitting new lows for this time of year, but buyers have a bit more time to find and consider their big purchase. \n\n \n \n \n \n \n \n\n \n\"The housing market is returning to normal seasonal patterns, and that's a positive sign for buyers who faced stiff competition this spring,\" said Zillow senior economist Nicole Bachaud. \"As summer winds down and kids head back to school, home shopping gets put on the back burner. Traditionally, buyers who remain in the market gain a bit more bargaining power heading into the fall. This year, however, sellers are sticking to the sidelines, which means even fewer options and high prices.\"\nThe typical U.S. home value climbed 0.9% from June to July — a steamy pace for this time of year, but a step back from 1.4% growth in the two preceding months. The nation's typical home value is now $349,679,2 which is 1.4% higher than last July and 46% above pre-pandemic levels in February 2020. \nAustin was the lone major market in which home values dipped from June to July, falling 0.5%. The slowest monthly home value growth was in San Antonio (0.2%), Denver (0.2%), Birmingham (0.3%) and Memphis (0.3%).\nSlowing sales give buyers a bit of breathing roomEasing monthly appreciation is one sign that the normal seasonal pendulum of the market is swinging back in favor of buyers. Homes are also spending longer on the market before going under contract — 12 days in July compared to 11 in June and 10 in April and May. That's still half as long as in 2019.\nThe volume of newly pending sales also slowed down along seasonal trend lines, falling about 6.5% from June to July. Sales of existing homes, constrained by affordability challenges and a lack of homes on the market, are down about 15% year over year. \nThe number o...