Homeowners Are Postponing the Sale of Their Homes as Housing Market Continues to Cool

According to Redfin’s latest report, more homeowners are delaying the sales of their homes as the housing market cools, which in turn is contributing to the largest decline in home listings in over two years. During the four-week period ending on August 7th, new home listings declined 12% year-over-year—the steepest decline since June of 2020.

Redfin notes that despite the decline in new listings, overall housing supply continues to grow—a sign that homebuyers are pulling back more than home sellers. The total number of homes for sale is up 4% year over year. That’s good news for the buyers who can afford to remain in the market because it means the housing shortage is easing, and there are more homes to choose from.

Sharing his insight and analysis on the report, Redfin’s Deputy Chief Economist Taylor Marr said, “Buyers are backing off due to rising housing costs and sellers are holding back because they realize they won’t get the bidding war they would have gotten six months ago. The good news is this is bringing balance to the market. If mortgage rates resume their downward trajectory, more buyers and sellers could get back in the game.”