Late-Summer Homebuying Slowdown Brings Additional Options to Potential Buyers

Zillow Group Inc. reported on Tuesday (9-12-23) that the expected end-of-summer slowdown in the housing market came with a pleasant surprise for many would-be homebuyers in August. According to Zillow’s latest market report, there has been an uptick of new listings. Although sellers are still listing fewer homes than pre-pandemic norms, the monthly increase gave buyers a bit of hope in the middle of a long-standing lack of inventory.

Zillow data shows that sellers listed nearly 350,000 homes for sale across the US in August, approximately 4% more than in July. Although the number of new listings is more than 20% below pre-pandemic norms, the uptick gave shoppers a few new choices at a time of the year when inventory is typically scarce. Zillow says that its data shows listings have shrunk every August going back to 2018. The slight increase in new listings has helped to cut the annual deficit in listings in half, from a negative 26% year-over-year in July to a negative 13% in August.

Adding additional background and his analysis to the report, Zillow Senior Economist Jeff Tucker said:

“Those still shopping for homes late in summer were offered a bit of relief, and not all from expected sources. Competition for houses tends to ease up at this time of year, giving buyers more time to decide and a better chance to negotiate on price. What we didn’t expect—especially considering 7-plus-percent mortgage rates—was more new listings. The inventory crunch is still far from resolved, but this was a small step in the right direction.”