Pending home sales posted their smallest year-over-year increase—7 percent—since late June 2020, according to Redfin. Pending sales fell 12 percent from their 2021 peak hit during the four-week period ending May 30.
By comparison, pending sales dropped 8 percent during the same period in 2019.
The majority of homes are still selling above asking price and within two week, but the anecdotal evidence points to the suggestion that the mass homebuying competition may have cooled.
“Home sellers are increasingly having to lower their expectations,” said Redfin Chief Economist Daryl Fairweather. “Many homebuyers have turned to the rental market amid such high home prices, but now with rental prices growing, I expect many will return to the housing market by spring of next year. The transition to this new slightly cooler phase of the housing market will happen unevenly depending on the location and the desirability of the home. If you are currently looking to buy a home, I recommend that you do your research on how much attention the home is getting before you put in your offer. If you find a home without any other offers, you may be able to get it for below the list price and with inspection and financing contingencies intact.”
You can read more from Redfin’s most recent four-week report by clicking here.