According to Redfin News, the housing market is shifting in favor of homebuyers right now. The big story is that new listings are coming on the market at levels we haven't seen in several years, while buyer demand has pretty much stayed flat. This combination is giving shoppers more choices and negotiating power than they've had in quite some time.
Looking at the numbers from late August, new listings jumped compared to the same period last year, reaching their highest point since mid-2022. Meanwhile, pending sales actually declined, which tells us that buyer interest isn't surging to match all these new options. This imbalance means inventory is building up across the country, giving buyers more homes to choose from.
The supply situation is becoming more balanced overall. We're seeing months of supply move into territory that's closer to what economists consider a true balanced market. More homes are sitting on the market longer, and sellers are increasingly dropping prices to attract offers. The share of homes selling above asking price is still relatively high, but it's worth noting that a significant portion of listings are getting marked down.
On the pricing front, median sale prices continue to inch upward compared to last year, though the monthly mortgage payment has ticked up slightly as well. Home values are holding relatively steady, but what's changed is the buyer's ability to shop around and negotiate rather than jump at the first thing they see.
What I am seeing locally in the Bay Area and East Bay is that this national trend is playing out in our market too, particularly in areas like San Jose where new listings are growing substantially. For sellers, this means pricing competitively and presenting your home in the best light matters more than it did when inventory was tight. For buyers, you finally have some breathing room to be selective and make thoughtful offers rather than getting caught up in bidding wars.
