This is one of the most dramatic increase in average price we’ve ever seen. Typically prices have been going up, when compared on a year-to-year basis, on an average of 2 %or 3%. In August prices jumped by nearly 6%.
Last year a total of 952 homes came on to the market in just August of 2022. This August that number dropped to only 609. This could be a direct result of the higher interest rates. If homeowners have a current mortgage with an interest rate around 3%, they may be less inclined to list their existing home to buy something with a new rate around 6% or 7%.
This is good news for buyers. As the average number of days on the market continues to creep upwards, that means anxious sellers may be more willing to negotiate. From August 2022 to August 2023 the average says on the marker increased by nearly 70%
Even as buyers get more leverage from the days on the market, sellers are still getting very close to the full asking price. Last month the average sale closed for 99.3% of what the sellers initially asked for- that is down slightly from August 2022.