A recent slowing in home price increases due to many areas having a big jump in for-sale inventories is signaling that the real estate market is seeing a change from a sellers to a buyers market. Due to these factors, many are predicting that there will be an above average surge in home sales during the fall months.
If you are one of those home buyers who has been waiting for better prices, you are likely to be satisfied with the upcoming drops in listing prices. Indeed, analysts at Redfin believe that September and October will see pricing changes benefiting the buyer.
We continue to see strong buyer demand as we head into fall, stated Redfins housing report, which shows the number of tours and offers picking up from July into August. The buyer fatigue from competing against multiple offers, bidding wars, and tight inventory is diminishing. Additionally, the widespread increase in price drops is likely to give buyers even more confidence that they have regained some of the bargaining power lost last year.
Areas like Ventura County have seen moderate price growth since last year, but also, for-sale inventories have gone up over 25%. As such, Ventura County has had the 2nd largest percentage of homes for sale that have dropped in price over the month of July. Notably, the Los Angeles market itself does continue to sell at rates that tend to be higher than the list price. However, because borrowing costs are very reasonable right now, this is encouraging more buyers to make offers.