According to Realtor.com Research, existing home sales pulled back in August, dropping to their lowest pace so far this year. The sales volume dipped compared to both the previous month and where we stood a year ago, which marked the end of a stretch where we'd been seeing year-over-year improvements. That's the kind of slowdown that gets everyone's attention, especially when you consider mortgage rates have been climbing and the Federal Reserve has rate decisions on the horizon that could push financing costs even higher.
Now here's where it gets interesting for buyers. While sales have cooled, the inventory side of the equation is actually improving. According to the data, available listings climbed notably from July and are running ahead of last year's levels. This shift has pushed the months supply of homes to levels we haven't seen in roughly a decade, which translates to better negotiating position for buyers compared to what we've experienced in recent years. It's creating more balanced conditions across the country on average.
What's happening with new listings tells us something important about seller sentiment. According to Realtor.com, fresh listings coming on the market remain sluggish, which suggests potential sellers are being cautious. But here's the key difference from last year: the sellers who are in the market are staying committed rather than backing out. This hesitation among new sellers will likely keep any buyer advantages from becoming too pronounced as we move forward.
There's one bright spot worth highlighting for buyers entering the market. Realtor.com found that first-time home buyers made up a larger share of sales in August, and that percentage is expected to grow. This makes sense because people with existing mortgages at lower rates are increasingly locked into their homes, while new buyers don't have that constraint. Historically, fall months work in favor of first-time buyers anyway, so this combination could create some real opportunity.
On pricing, homes are selling for modestly more than they did a year ago, though prices did pull back from July, which is typical seasonally. According to the data, asking prices across the country have been softer this year compared to previous periods, but that downward pressure has been easing up somewhat.
What I'm seeing locally here in the Bay Area and throughout the East Bay aligns with these national trends but with our own twist. Our market still runs hotter than most places, but these inventory gains are definitely being felt. Fremont and the broader East Bay are seeing more balance than we've had, and that's changing conversations between buyers and sellers. If you're thinking about making a move, this environment rewards doing your homework and understanding that the leverage is gradually shifting.
