After several years of a seller-dominated housing market, real estate agents are seeing conditions move toward greater balance between buyers and sellers, CNBC reports.
In a second-quarter Housing Market Survey, 44% of agents reported a balanced market, up from 30% in the third quarter of last year. More inventory, slower price growth and sellers becoming more realistic with pricing are helping create a more even playing field.
Home sales improved slightly, with May sales up 3% year over year, driven by increased supply and easing prices. While home prices remain slightly higher than last year, asking prices have declined, with Realtor.com reporting a 2.5% year-over-year drop in June, the largest decline since tracking began. Agents also reported fewer price cuts and fewer failed contracts as sellers adjust expectations and price homes more competitively.
Despite improving balance, affordability remains a major challenge with mortgage rates and home prices having replaced economic concerns as top worries among buyers. The average 30-year fixed mortgage rate has remained around 6.6%, limiting buyer activity.
Inventory is improving but remains historically tight, with about 1.1 million homes for sale, significantly higher than the lows seen after the pandemic housing boom. However, agents are less optimistic about near-term sales growth, with only 19% expecting sales to improve compared with 48% last year.
