Zillow: Sellers Slam the Brakes

(Thumbnail photo: Michael Tucker)

Sellers took a step back from the housing market in August in response to slow demand from cash-strapped home shoppers, according to the latest market report from Zillow, Seattle.

The report noted that buyers still in the market have plenty of opportunity, especially in areas seeing inventory hold strong. But competitive momentum that has been swinging fast in buyers’ favor in recent months is showing signs of stopping nationwide.

“Buyers who can afford a home and have been waiting for the right moment should look closely at what’s available now,” Zillow senior economist Kara Ng said. “Options are on the shelves, even if they’re not all fresh. Sidelined buyers should revisit their budget; mortgage rates are lower than recent years, and in some markets, sellers are more willing to deal. But don’t expect this window of opportunity to stay open indefinitely. Buyers’ leverage is easing as many sellers put their plans to list on hold.”

Zillow said high housing costs continue to sideline many prospective buyers, making it easier for those still in the hunt. The firm’s heat index shows the market is balanced between buyers and sellers nationwide, with less competition among buyers than in any August since 2018.

“As a result, home value appreciation has slowed to a standstill,” the report said. “Typical home value growth nationwide measured by Zillow’s Home Value Index is now flat over the past year — the second-slowest annual growth of any month since the start of 2018.”