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Housing Market Trending Toward ‘Typical’

In further signs of a slightly cooling market, the share of homes with price drops has now passed the 5% mark, according to a Redfin report [1]. The research team there reports that this is the highest level this metric has reached since 2019. This time of year, the price drop level typically remains flat, however Redfin reports it is climbing.

While something to keep an eye on, economists say the market still very much favors the seller. Home prices are still rising and homes are selling very quickly, just slightly slower than before. Homebuying demand remains strong, however, home sellers can still overprice their homes, and those that go a week or two on the market without any bids are adjusting their asking prices accordingly, said Redfin Chief Economist Daryl Fairweather.

"The housing market is less hectic than it was in early spring, but it's still far from typical. The move to a less imbalanced market is happening slowly," said Redfin Chief Economist Daryl Fairweather. "As we approach the beginning of back-to-school season, home prices typically cool, supply winds down, and homes take longer to sell. All that's happening, just very slowly. I don't think the housing market will return to a fully typical state anytime soon, but we are starting to trend in that direction."

Highlights from Redfin's market report, which covers a four-week period ending August 15:

The full report is available at Redfin.com [2].