Homes sold below their list price at the peak of the housing season, a shift that could tip the real estate market in favor of buyers, according to Redfin.

During a four-week span in May and June, the typical home sold for 0.3% less than its asking price, Redfin reports. This is significant because, in the past few years, homes usually sold at or above list price during this peak season. This year, that trend has changed.

Daryl Fairweather, Redfin’s chief economist, says, “The housing market is starting to move to the buyer’s favor.” Redfin also found that fewer than one-third of homes – 32% – sold over list price in the four weeks ending June 23. This is the lowest rate for late spring since 2020, signaling good news for buyers but not so much for sellers.

Ryan Sypek, a broker associate at Compass real estate in Los Angeles, observes that “buyers have the power” now, a notable change after months of a challenging market for buyers. Prices and mortgage rates have been high, with a shortage of new homes and homeowners reluctant to sell due to low interest rates on their current mortgages.

Earlier this year, Fairweather described the market as “the least affordable housing market in recent memory” for homebuyers. However, the market has recently loosened up a bit for buyers. New listings are up 8.2% from a year ago, and 62% of listings in May had been on the market for at least 30 days, compared to 50% two years earlier. “During the pandemic, I had a house that had 60 offers on it,” Sypek recalls. “Now, if I have a listing, I’m lucky if I’m getting four.”

Economists suggest that sellers may be setting their asking prices too high, not realizing they’re entering a buyer’s market. Fairweather explains, “People are setting prices based on what they saw their neighbors’ homes sell for three or four months ago, and maybe that was when there were more buyers on the market.” During much of the pandemic, sellers enjoyed bidding wars, a trend that is now reversing.

Danielle Hale, chief economist at Realtor.com, notes, “The last couple years, it became normal for sellers to get more than the asking price, but that was really an aberration fueled by high demand and low inventory.” Now, inventory is rising, with the number of listings up 37% from June 2023 to June 2024, marking the eighth consecutive month of growth.

“We’re starting to see more affordable homes on the market,” Hale says, which is a welcome trend for buyers. The median sale price is at a record $397,250, nearly 5% higher than a year ago, and the average interest rate for a 30-year fixed mortgage is 7.4%, double the rate from the start of 2022. This puts the typical homebuyer’s monthly payment at $2,785.

During the pandemic, homes often sold well above asking price. Now, with rising inventory and homes sitting unsold, buyers have more options. Sypek notes a “lack of urgency” from buyers, which historically drives prices up. He also cautions that the national real estate market is a constellation of smaller markets, each with its own trends.

In some regions, like Seekonk, Massachusetts, and outside Philadelphia, homes are still selling above asking price. Jess Clegg, a broker-owner at Next Nest Real Estate, recently closed on two homes that sold for $38,000 and $76,000 over asking. Michael Maerten, chairman of the Board of Tri-County Suburban REALTORS, notes that local sellers have reaped 102.7% of asking price in the last 30 days.

The key for sellers is to price their homes appropriately. “If you’re pricing your home appropriately,” Clegg advises, “then you’re going to sell for over list.”

Stay tuned for more updates as the real estate market continues to evolve!

Original article by Daniel de Visé USA TODAY can be found at Why the housing market is getting better for buyers (usatoday.com)

Home values across Western Washington are generally on the rise for 2024, but the increase varies by community. Meanwhile, many office spaces and condos are experiencing a decline in value.

“After dramatic fluctuations in the residential market during the COVID years, values have returned to a steady level of increase,” stated King County Assessor John Wilson. “The volatility now is in the commercial sector and among condominiums.”

Property owners in Western Washington will soon receive notices detailing how much their property values have changed over the past year. These updates are crucial for determining next year’s taxes, as 2024 property values will influence 2025 tax bills. King County alone has over 720,000 property owners who will be receiving these notices.

Pierce County Assessor-Treasurer Mike Lonergan emphasized that a rise in property values doesn’t automatically mean higher property taxes next year. State law restricts taxing districts to a 1% increase annually unless voters decide otherwise.

“Your property tax in 2025 will be based on the new 2024 value multiplied by the combined tax rates of your school district, city, fire district, and other local districts, plus the statewide school levy that everyone pays,” Lonergan explained. “So, a lot depends on public votes such as levy lid lifts and bond issues.”

King County Property Values

In King County, most residential areas can expect an average value increase of about 10%. However, condos have seen a decline in value due to fewer sales in 2023. Commercial property values are mixed, especially in downtown Seattle, where they have dropped significantly.

Key points from the King County Assessor’s Office:

• Seattle home values increased mostly in the single digits.
• Some east King County areas saw residential values increase by about 20%.
• Countywide condo values have declined by single digits, with downtown Seattle condos seeing the largest drop.
• Industrial property values are up 10%.
• Larger office spaces are down 30-35%, with many long-term leases renewing for shorter periods and less space.
• Commercial values in downtown Seattle, Pioneer Square, and Lake Union are down 35-40%.

Pierce County Property Values

Home values in Pierce County have increased by an average of 6.2% this year, bringing the average residential property value from $521,300 to $535,500. This follows a 3% drop in value last year.

“The largest home value increases are around 7% in Orting, Eatonville, and Lakewood, Tacoma, Puyallup, and Sumner,” Lonergan noted. “The smallest increases were under 1% in Fircrest and 3% in Milton.”

The Pierce County Assessor-Treasurer Office reported mixed results for other property types. Warehouses and mobile home parks saw substantial increases, while commercial properties had a moderate 3% value increase. Retail property values were fairly flat, and office spaces lost value.

Snohomish County Property Values

According to the Snohomish County Assessor’s Office, the 2023 market showed steady appreciation in residential sale prices, while the commercial property market remained relatively flat. The 2024 assessed valuations for 2025 taxes saw an overall increase of 4.49% countywide, with residential properties averaging a 5.36% increase and commercial properties a 1.34% increase.

Stay tuned for more updates and insights into the real estate market trends in Western Washington!

Original article by KUOW STAFF can be found at KUOW – Most of western Washington will see a rise in 2024 property values, but not everywhere

Great news for homebuyers: the housing market is starting to tilt in your favor! Compass cofounder and CEO Robert Reffkin recently shared some insights that highlight how the market dynamics are changing.

Reffkin told CNBC that currently, 30% of the housing inventory has seen price drops, a level not seen in the past decade. Additionally, there’s been a 16% increase in available homes. “It’s a different environment. We are now seeing more sellers than buyers,” he said.

The trend is especially noticeable in the South, where earlier price surges are now leading to more significant price cuts. Florida, in particular, has been affected by rising home insurance costs, which have jumped by 40% year over year, putting extra pressure on asking prices.

“Sellers need to be mindful of how buyers are reacting to high prices,” Reffkin advised. “If your home is well priced, it will sell quickly. But if not, it will sit on the market, leading to price drops. When that happens, buyers sense an opportunity, and it could hurt you even more.”

Interestingly, high-end buyers are feeling more confident due to recent stock market gains. “You don’t need lower mortgage rates if your stock portfolio is at an all-time high,” Reffkin noted.

A recent report highlighted that Texas and Florida are now among the best places for buyers, according to Zillow’s market heat index. This index considers factors like the share of homes with accepted offers within 21 days, the share of homes with price cuts, and engagement with listings on Zillow’s platform.

Zillow mentioned, “Would-be buyers who witnessed intense competition in sunny Texas and Florida markets earlier on in the pandemic aren’t seeing such a frenzy now.”

Redfin CEO Glenn Kelman also shared an optimistic outlook for the housing market in the latter half of 2024. However, he cautioned that this depends on potential rate cuts from the Federal Reserve. Without these cuts, sales might slow down or even decline. For now, he suggests that while it’s not time to celebrate with champagne, the market is looking a bit better, and that’s something worth noting.

This story originally appeared on Fortune.com.