Pending home sales in the United States increased by 1.6 percent year over year during the four weeks ending August 27, 2023. This marks the second consecutive month of growth in pending sales, according to a report from the real estate brokerage Redfin. The rise in home sales coincides with a notable increase in affordable listings, suggesting a strengthening buyer’s market.
Data from online platform Zillow indicates that approximately 439,000 homes available for sale in July were within reach for households earning the median income. This represents a substantial 20 percent increase from the previous year and is the highest total recorded since August 2022. The combination of rising sales and greater affordability points to a market that is becoming increasingly favorable for buyers.
Market Dynamics Favor Buyers
The increasing number of home tours this year is outpacing last year’s figures. Many potential buyers are gaining confidence as mortgage rates begin to decline. Ali Mafi, a Redfin agent based in San Francisco, noted that “buyers are circling.” While some home hunters are making offers, others are hesitating, anticipating further drops in mortgage rates. Mafi advises buyers to act promptly, suggesting that the current conditions still favor them, as most sellers are open to negotiation.
“House hunters are feeling more confident about buying a home now that mortgage rates have started to decline,” Mafi added. The sentiment among buyers reflects a growing optimism in the housing market, which has been characterized by fluctuations in interest rates over the past several months.
As potential buyers weigh their options, the market dynamics indicate that those who decide to act now may benefit from favorable terms. The ongoing trend of increased home listings and stable sales levels suggests a shift that could shape the market in the coming months.
In summary, the current landscape of the housing market, as revealed by reports from Redfin and Zillow, showcases a positive trend for buyers. With affordability climbing to its highest level since 2022 and pending home sales on the rise, the market appears to be adjusting favorably for those looking to purchase homes.
