With less than two weeks until the official end of summer, the housing market remains in a worrying state of gridlock.
Sellers are asking for too much money and buyers are not giving in to their high prices.
Meanwhile, properties across the country are gathering dust after sitting on the market for far longer than usual – a clear sign that buyers aren’t eager to commit.
August’s final few days saw home prices and the median price per square foot flatline compared to last year, despite the slower selling pace.
‘Affordability constraints are keeping buyers on the sidelines this summer,’ said Realtor.com economist Joel Berner.
This is leaving both sellers and builders, who remain unable to sell homes at ideal prices in good time, feeling frustrated.
All of this is panning out just before we enter what experts call the ‘best time of the year’ to buy a house.
‘The best time of year to buy a home, usually in early-to-mid-October, is on the horizon, but buyers may be seeing more homes that have sat on the market all summer than freshly listed ones as this prime buying period approaches,’ said Berner.
Home sellers are asking for too much money and buyers are not giving in to their high prices
The current housing market drama is panning out just before we enter what experts call the ‘best time of the year’ to buy a house
Last year, Realtor.com reported that the best time to buy a home was the week of September 29 to October 5.
This was based on historic trends that predict the first week of October tends to see up to 37 percent more active listings than at the start of the year.
Buyers will have even more properties to choose from this autumn, as new home inventory is at its highest level since 2007 – which was just before the housing market collapse that led to the Great Recession, Fortune reported.
The week ending on August 30 was the 95th straight week of annual gains in inventory.
There were about 1.1 million homes for sale, marking the 18th week in a row over the million-listing threshold.
‘Active inventory is growing significantly faster than new listings, an indication that more homes are sitting on the market for longer,’ Berner said.
‘Affordability constraints are keeping buyers on the sidelines this summer,’ says Realtor.com economist Joel Berner
Last year, Realtor.com reported that the best time to buy a home was the week of September 29 to October 5
Buyers will have even more properties to choose from this autumn, as new home inventory is at its highest level since 2007
While fall may be considered the best time of year to buy a home, it is not the busiest.
This time of year is known as the ‘off-season’ for real estate because it has been historically less competitive than spring, which is considered the peak or busiest time of year for home sales, according to Forbes.
Buyers are also poised to save more money during this time, compared with the spring and summer peak.
Because the market is historically less chaotic in general, the season offers a more pleasant buying experience.
With less frantic activity, it is generally easier to schedule inspections, appraisals and closings, which could potentially speed up the move-in process.