In response to today’s pricey economy, Micheal “Mike” Price (Mortgage License #244007, Real Estate Salesperson License #720851), Owner and President of LTI Mortgage, now offers “The Hybrid Agent Program” to save buyers and investors lots of money. Mike is a well-rounded mortgage broker and real estate agent with nearly 20 years of experience in the Dallas-Fort Worth (DFW) real estate market. He has seen his fair share of client headaches, heartaches, and concerns. That makes him a leading real estate industry expert able to provide robust lending and sales solutions while offering massive financial savings.

The primary benefit of working with Mike as “The Hybrid Agent” is his ability to direct up to half of the real estate commission toward closing the deal. That money can be used in a number of ways including the following:

– reducing overall closing costs
– buying down the interest rate to save big over the long term of the loan
– buying out a private mortgage insurance (PMI)
– or using a combination of the above

Mike Price’s mortgage company, LTI Mortgage, already provides a competitive funding solution. His company’s financing rates are lower than the majority of other lenders and banks. But now, with “The Hybrid Agent Program,” he saves clients more money and makes transactions easier. As “The Hybrid Agent,” Mike is one point of contact for both the sales and financing sides of the real estate transaction. That way, he ensures there is a robust and legal communication path around finding a home or property you love and also paying for it. Starting immediately, “The Hybrid Agent” is taking on new clients. Those clients will quickly see exactly how much they save by viewing financial comparisons between purchasing a home with his “The Hybrid Agent Program” and purchasing without it.

To start saving with “The Hybrid Agent,” go to https://hybridagenthomes.com/vsl. There, you can register, see the program in action, read case studies, see and hear Mike Price speak about his offerings in a short video, and schedule a consultation to save money on your next real estate transaction.

Home buying is getting harder, with mortgage rates on the rise again this week. This Thursday, they hit an average of 5.55%, according to data from Freddie Mac. Mortgage rates are now almost double what they were one year ago, and the latest data highlights the impact the increases are having on the cost of borrowing.

Freddie Mac clocked the average 30-year, fixed-rate mortgage at 5.55% this week, up from 5.13% one week earlier and just 2.87% a year ago. Meanwhile, the average 15-year fixed-rate mortgage was 4.85%, up from 4.55% a week ago and 2.17% one year before. As for the 5-year, hybrid adjustable-rate mortgage, this averages 4.36%, down from 4.39% last week but up from last year’s 2.42%.

Earlier this week, National Association of Realtors Chief Economist Lawrence Yun proclaimed that the U.S. is now experiencing a “housing recession”, with existing home sales falling 20% from a year ago. At the same time, new contract signings have also fallen by 20%, suggesting that things will only get worse as the year progresses. Moreover, there’s been a significant downturn in new home sales, which fell by 30% annually in July.

In a blog post, NAR Senior Economist and Director of Forecasting Nadia Evangelou said buyers are being further hampered by strong home price growth, which are still up by double-digits compared to a year earlier. She wrote that a median-priced home now costs around $40,000 more than it did one year ago. However, while increased prices drive costs up, the rising rates do so even more. An increase of just one percentage point in mortgage rates has the same effect on mortgage payments as if home prices rose by 13 percentage points, Evangelou said.

The NAR said this week homes haven’t been this unaffordable since 1989. Increasing rates have made borrowing more expensive. In July, the typical monthly mortgage payment was almost $2,000 per month, up 54% from a year ago.

 New Western, the largest national private marketplace for fix-and-flip residential investment properties, announced today that the company has made homeownership accessible for more Americans by growing U.S. housing inventory by 6,540 units to date in 2022. Without building a single home, New Western accomplished this increase thanks to its data, advanced knowledge of local markets, and its business model, which includes obtaining inventory from among the 16 million vacant homes across the United States as well as other off-market properties for less than $250,000 on average. As a result, homes that are purchased through New Western’s marketplace and later renovated sell for up to 31% less than new builds. 

New Western’s unprecedented growth in 2022 is driven by its rapid expansion into 10 new markets for a total of 50 locations nationwide. This includes its newest office in Washington, D.C., where New Western has set a goal to revitalize almost $1 billion in properties in that region over the next five years. New Western identified the District of Columbia and its surrounding cities as a strong opportunity for investors because of the need locally for a disruptive force in the residential real estate market: The median sale price of a single-family home in Washington, D.C., in July, was $1.153 million, and just 98 homes sold that month, down 19% from July 2021 from Redfin. With 81.8% of homes in the D.C. metro area alone built before 2002, New Western will help address the affordable housing crisis in the D.C. area by returning aged and distressed homes to the market.

“Our rapid growth continues to enable us to improve the quality of opportunity that New Western provides, especially as we launch into one of the largest metropolitan markets in the United States,” said Kurt Carlton, co-founder, and president of New Western. “D.C.-area home prices have been rising for 13 consecutive years. We are in a unique position to deliver much-needed inventory to this market and look forward to creating more affordable housing. I’d like to express my gratitude to all our employees for their hard work and commitment to deliver on this promise.” 

New Western’s model is growing residential housing inventory in the United States at a time when home ownership is increasingly out of reach for many Americans – due in part to low inventory and cost. Although housing inventory rose in May by 8%, that was the first monthly increase since June 2019. When compared to May 2020, active home listings have decreased by 48.5%, pushing prices up by record amounts in many cities from Realtor.com. 

“New Western offers substantial opportunity for sellers, buyers, and investors, as well as a positive impact in many neighborhoods. Their unique marketplace delivers value-add homes that would otherwise be unappealing to most residential homebuyers – something I really appreciate as a Chicago native,” said Joan Kaufmann-Stube, Managing Broker of Circled Squared Real Estate in New Lenox, Ill. “In addition to the great value New Western brings to the real estate ecosystem, one of the main reasons I recommend New Western’s marketplace to my investor clients is because their inventory is available on a first-come, first-served basis, eliminating bidding wars and increasing investor profitability.”

With the huge rise in popularity of sustainable business practices, more consumers than ever are looking to spend their money with companies that not only claim to care about the environment, but also prove it through their actions. 

But with these increased expectations and culpability for businesses comes more distrust for global juggernauts who use huge volumes of energy on a daily basis. And in this gap of trust between a customer and a larger scale business is the opportunity for a smaller company to shine and promote themselves more effectively. 

It doesn’t matter what industry you’re in, or whereabouts in the world you do business, an SME can captivate new customers and convert them into loyal returning consumers with just a little honesty and a lot of creative hustle! 

Here are just a few reasons why small businesses should promote their sustainability across their websites, social media channels, and more. 

You’ll instantly appear more cutting-edge

Pending home sales, which is a gauge of signed contracts to buy existing homes, dropped by 1% from June to July, according to the National Association of Realtors. As a result, pending home sales are now down 19.9% from a year ago.

It means that pending home sales have fallen for eight of the last nine months, a result of housing becoming more unaffordable due to rising mortgage rates and higher inflation. The typical monthly mortgage payment has increased 54% from a year ago as a result of higher rates, the NAR said.

However, the drop in pending home sales was noticeably smaller than in earlier months, and could be a sign of the market settling down, at least temporarily, said NAR Chief Economist Lawrence Yun.

“We may be at or close to the bottom in contract signings,” Yun stated. “This month’s very modest decline reflects the recent retreat in mortgage rates. Inventories are growing for homes in the upper price ranges, but limited supply at lower price points is hindering transaction activity.”

Mortgage rates have risen steadily since the start of the year. They peaked in June at just over 6% before falling slightly in July. However, this week they started rising again and are now approaching 6% once more, according to Mortgage News Daily.

This time last year, new homes were in such big demand that builders simply couldn’t make them fast enough. They were reportedly overflowing with new contracts, and some even resorted to selling their few available lots via lotteries to their legions of wait-listed buyers.

However times have changed and buyer traffic has suddenly ground to a halt. Building costs have soared, interest rates are up and high inflation has killed buyer’s budgets. Demand for new homes has subsequently crashed as a result.

New-home sales in July reached their slowest pace in six years, the Department of Housing and Urban Development and the Census Bureau reported Tuesday. New single-family home purchases declined 12.6% month over month and were down nearly 30% from a year earlier.

“The disappointing sales pace mirrors an ongoing decline in builder sentiment as elevated mortgage rates and higher construction costs are pushing more consumers out of the market, particularly entry-level buyers,” says Jerry Konter, chairman of the National Association of Home Builders.

It’s yet another sign of a sudden plunge in the new-home sector. Housing starts for single-family construction projects dropped 10% year over year in July; mortgage applications for new-home purchases fell 16.1% the same month; and homebuilding sentiment dipped for the eighth straight month in August. The number of buyers backing out of new-home contracts also is growing: Homebuilder cancellation rates have more than doubled since April, according to John Burns Real Estate Consulting. In July, 17.6% of builder contracts fell through, compared to 8% in April.

Over the last few years it has been an extreme seller’s market characterized by low inventory and rising home prices. Home sellers have been in the drivers seat.

Most homes listed for sale have experienced bidding wars with sales prices ending up far over the asking price. It has been the ultimate nirvana for home sellers. Not so much for home buyers who have seen their dream home become more and more expensive.

Home buyers have been afforded the luxury of ultra-low interest rates, so some of the pain of high home prices has been absorbed by such attractive mortgage rates.

In real estate all good things eventually come to an end. Markets eventually shift one way or another.

Unfortunately, mortgage rates have risen now to the point where some buyers have been locked out of the market.

Going to a public gym has become unpopular in the past couple of years due to the impact of COVID-19 and related restrictions. If in 2019, the market size of the gym, health, and fitness club industry in the United States was $39.9 billion, in 2021, it decreased to $35.3 billion. However, Statista predicts that the market will recover in 2022, reaching $36.6 billion by the end of the year. 

Woman Exercising On Treadmill Wearing Wireless Earphones And Smart Watch Checking Mobile Phone

People will likely return to their fitness routines and gyms in the following months, but the frugal ones will probably invest in a smart home gym rather than paying for a public boutique or high-end gym. 

Strong Home Gym published research showing the average gym membership cost for 22 different gyms in the US. Among them are Lifetime Fitness, YMCA, 24-Hour Fitness, Anytime Fitness, Youfit, Planet Fitness, CrossFit, and Rumble. Here are their results:

These membership fees vary because of location, equipment available, and other gym services and facilities available for members. If you enjoy exercising regularly, like three-four times a week, or every day, a gym membership is worth it. But if the venue is not close to home, it will also cost you time and transportation. Plus, you will need to buy apparel. If you also consider that you will not spend as much time with your family as you could exercising at home, investing in a home gym makes sense. 

During COVID-19 lockdowns, when gyms were shut, many people worldwide trained at home with weights, fitness gear (exercise bikes, ellipticals, treadmills, etc.), and YouTube videos instead of personal trainers. As a result, building a smart home gym became a trend. And providers of smart technology for home gyms took advantage of the trend. 

Mortgage repayments have risen by an average of 54% compared to the previous year, according to the National Association of Realtor’s June Housing Affordability Index. Meanwhile, household incomes have only increased by 5.8% over the same period.

What that means is that housing affordability is now at its weakest level in 33 years, the NAR says. Median home prices have risen to a record-breaking $413,800, a pace that “far exceeds wage gains, especially for low- and middle-income workers,” said NAR Chief Economist Lawrence Yun.

The NAR’s data shows that home affordability took a massive hit in the second quarter. The average monthly mortgage repayment on a median single-family home has jumped by almost a third during that period, compared with the first quarter. Meanwhile, the 30-year fixed-rate mortgage has almost doubled in the last year.

In June, the NAR’s data shows that the average monthly mortgage repayment was $1,944, up from just $1,265 a year before. That’s an extra $679 per month that households have to come up with. As a percentage of incomes, mortgage repayments now account for 25.4%. Financial experts generally agree that if a housing repayment exceeds 25% of someone’s income, then it is considered “unaffordable”.

“Monthly mortgage payments have soared compared to last year, and rising home prices are not helping affordability conditions,” said Michael Hyman, a research data specialist at NAR, in the association’s Economists’ Outlook blog. “One good sign for the housing market is a welcome increase in the supply of inventory. Another is that rates recently have cooled, slowing the pace of growing monthly mortgage payments.”

Have you heard the term MLS in real estate and wondered what it meant?

When you begin the process of either buying or selling a home, you are likely to hear about the multiple listings service. The multiple listing service or MLS is a way for real estate agents to connect buyers and sellers better.

As a seller, it lets the world know you’re home is for sale. As a buyer, it makes it far easier to be informed about precisely what is publicly available to purchase.

So how does the MLS in real estate work? How will it affect you when you’re involved in a property transaction? Let’s examine everything you need to know about the MLS cooperation system.

What is MLS in Real Estate?

The multiple listings service is a database containing information shared by real estate brokers. It makes sharing information on homes for sale between the different brokerages.

After two years of unprecedented growth, home values fell slightly from June to July, according to the latest market report from Zillow. The market is quickly rebalancing. With buyers’ purchasing power diminished by nearly two years of double-digit price growth and higher mortgage rates, competition for homes is dropping off.

The typical U.S. home value declined by 0.1% ($366) month over month in July and now stands at $357,107, as measured by the raw Zillow Home Value Index (ZHVI). Monthly growth in this metric has relaxed since reaching a recent peak of 1.9% in April, slowing to 1.2% growth in May and 0.8% growth in June. It’s not unusual for home price growth to decelerate this time of year, but the small decline is the first monthly dip since 2012. The nation’s typical home value is up 16% year over year and 44.5% since July 2019.

“Home values flattening so quickly after recent record growth might surprise, but it’s a badly needed rebalancing that gives home buyers more options, more time to shop and more negotiating power,” said Zillow chief economist Skylar Olsen. “This slowdown is about discouraged buyers pulling back after the affordability shock from higher rates. As prices soften, many will renew their interest, and we will continue our progress back to ‘normal.’ With buyers ready in the wings once confidence returns, homeowners can expect to keep the majority of the equity gains they’ve seen in the last two years.”

Home values measured by raw ZHVI fell from June to July in 30 of the 50 largest metro areas, an increase from 13 the previous month. The largest monthly home value declines were in San Jose (-4.5%) and San Francisco (-2.8%) — the nation’s most expensive major markets — followed by Phoenix (-2.8%) and Austin (-2.7%), which saw the most extreme growth over the pandemic. Values rose the most since June in Miami (1.5%), Richmond (1%) and Memphis (0.9%), although monthly growth has decelerated in these markets.

Home shoppers still on the hunt have more time to find and consider their options, and have a better chance of seeing price cuts. Listings’ median days to pending jumped by two days in July to 10 — still nearly two weeks less than in July 2019. Among major metros, typical time on market is rising fastest in Austin, Phoenix and San Jose. A wide swath of sellers are adjusting pricing to meet buyers’ expectations, as the share of listings with a price cut grew to 18.6% in July, a few percentage points higher than in July 2019.

This week our “top agents” journey takes us to Myrtle Beach, South Carolina, in search of the superstars of real estate marketing. Over the past few months, we’ve been experimenting with better methods for finding and evaluating real estate professionals. We’ve met with some success but a lot more complications. 

For larger markets, keying on reviews at Google and Zillow proved effective. However, less “mature” markets require a lot more effort (drill down) in order to differentiate. And Myrtle Beach proved to be a prime example. There may be no foolproof method for discovering the best of the best online! Maybe all we can do is suggest “best practices” for certifying the top agents in America and the world. 

Scott Trembley – Oak & Ocean

Scott Trembley seems to have the highest and most highly positive Google and Zillow reviews among agents in this region. I use the term “seems” since it’s becoming increasingly difficult to filter agents in smaller niche markets in this way. Trembley’s Keller Williams Oak & Ocean Group has an overall 4.9 rating on 400+ reviews on Google and a perfect score on Zillow with 972 reviews. In fact, I filtered Trembley from among his competitors by reversing my procedure and searching Zillow first. 

Being the top dog in Myrtle Beach, you’d expect Trembley to have a stunning website with highly visible social media buttons that connect his agency’s extensions. But, you’d be disappointed as I was when you click the little buttons, and you’re taken to accounts that are now gone. Oops! The only one that seems to work is the Youtube link, which goes to one video with 8 views. So much for digital sales and marketing genius. Trembley is not vested in local media outreach either, so I guess we’re seeing a traditional brick-and-mortar operation. The point is, we’re left guessing. A final plus for Trembley is the fact his website ranked 83/100 for SEO. 

Radha Herring – Myrtle Beach Area Real Estate Professional – Facebook

Another agent who was a bit tough to isolate from the crowd in Myrtle Beach, Radha Herring, actually has a killer digital presence and perfect reviews at Google and Zillow. With 97 sales in the last 12 months, she’s racking up the commissions for herself and Watermark Real Estate Group. She’s also a Zillow Premier Agent, which means she understands the value of ads and branding too. And then there’s the downside. The Watermark website is a catastrophe in which somebody managed a 67/100 SEO score. I won’t delve into how jacked up the site is. 

When you get on the first wrung of the property ladder, it’s definitely an accomplishment. It’s one of the key stages of your life, buying your first property – whether that’s a house, apartment, or even a holiday home. It’s also a massive financial investment and there are costs associated with it. 

Some of the additional costs that come with buying a home are relatively unknown. This can come as a shock when all of a sudden, you’ve got to pay for things you didn’t know you had to. Here are a few of those potential additional costs:

Home Inspection Fee

This is a fee that is paid to a professional home inspector. They will come and inspect the property to make sure that it is in good condition and that there are no major problems. This fee can range from a few hundred dollars to a few thousand, depending on the size and condition of the property.

Many people will try to avoid getting a home inspection in order to save money. However, this could end up costing you more money in the long run if there are major problems with the property that are not discovered until after you have bought it.

If you are always on the lookout for modern décor trends, you might be familiar with LED strips. These decorative items contribute to brightening up surroundings and giving them a modern touch.

LED strip lights suit both indoor and outdoor environments and are very versatile. However, you need to know how to choose the right light and how to apply it wisely to achieve the best decoration result with a more refined touch.

Where can I use LED strip lights?

According to the most modern decoration trends, you can use lights and colors in any room in the house. In this case, using LED strips on stairs, handrails, skirting boards, and furniture can be an excellent alternative to make the environment more pleasant and illuminated. 

Strip lights are long tapes with various lights, which can be white or colored. Some types come with an adhesive strip on the back, making it easier to install. 

The average home buyer in the U.S. needs about $250,000. If you’re like the majority of potential homebuyers, you don’t have this kind of money. Even if you do, you’re not going to spend it all on a house. Your decision to take out a mortgage is undoubtedly motivated by this reason. A mortgage is a big financial commitment, but it’s also sound. Long-term, buying a home is more cost-effective than renting.

The process of getting a home loan is similar to getting any other type of loan. When it comes to mortgage rates, you want to ensure you’re getting the best deal possible. Let’s take a closer look at a few things that you can do to help you choose from various home loans that are the best match for your needs.

Check Your Credit

Mortgages are heavily influenced by your credit score. This can result in a change in interest rates or even the denial of your mortgage application. Check your credit before starting the mortgage process. In the future, you may be able to save a great deal of time by knowing your credit information.

Knowing your credit score makes it easy to determine whether you qualify for a particular mortgage. A mortgage lender may not consider your application if you have a credit score of 650 and it requires a credit score of 700. Focus instead on improving your credit so you can qualify. 

Ask Brian is a weekly column by Real Estate Expert Brian Kline. If you have questions on real estate investing, DIY, home buying/selling, or other housing inquiries please email your questions to askbrian@realtybiznews.com.

Question from Gianna in MI: Hi Brian, After two years of dreaming about buying my first home, I have cold feet now that my offer has been accepted. It seemed like it was too good to be true. I’ve made four other offers over the past year, and this is the first that was accepted. Not only was it accepted, but I made the offer in the morning, and it was accepted the same afternoon. It’s obvious to me that the seller is desperate. That’s probably why the price was a little below the market average. Yeah, I’ve been studying the market for a while and knew what houses were selling for. In my eagerness to buy my first home, I made a full-price offer with the only continency being that my mortgage was approved. I didn’t even include an inspection contingency. Now I have buyer’s regret. In a few short weeks, the market has gotten much softer in this neighborhood and I’m not even sure the house will appraise for my purchase offer. I’m thinking this could be my way to get out of the purchase agreement so that I can wait a few more months until prices come down further. What do you think?

Answer: Hello Gianna. Your question is very timely as the residential market is transitioning away from being a seller’s market to being a more balanced market. While it is not yet a buyer’s market, buyers are in a much better place than they were a few short months ago. I’m almost certain that your biggest concern is about what will happen with your earnest money if you back out of the deal. It does sound like the appraisal is key to answering that question. Let’s look at what is probably going on here.

As the buyer, you submit an earnest money deposit when you make an offer on a home. The deposit is credited toward your down payment or returned to you if the real estate contract is legitimately canceled. If you want to get out of a real estate contract without meeting the terms, you risk losing your earnest money. Getting out of the signed contract and having your earnest money returned to you is typically only possible if the contingencies are not met. I’ll get into some common contingencies in a moment. Gianna, if I understand you correctly, the only contingency that you have is your loan approval which is based on the appraisal. I think that is a mistake in this evolving market. But if that is where you are at and you really don’t want to buy the home, there are only two suggestions that I have for you. First, if the market in your area really is slumping, postpone the appraisal for as long as you can. The more prices slump, the more likely the house will not appraise for the amount of your purchase offer. However, you said the house was listed slightly below market value. That could mean that prices will have to fall quite a way before the house appraises below your purchase offer. My only other suggestion is that you have a real estate attorney go over your purchase offer with a fine-tooth comb looking for other possible loopholes. With that said, here are a few other thoughts for people navigating today’s evolving real estate market.

The best time to think about canceling a purchase agreement is when you sign an agreement. Before you sign legal documents such as these, ask how you can cancel if things don’t work out the way you hope, or if you change your mind. If you can’t find a satisfactory answer, or you can’t figure it out yourself by reading the cancellation clauses, then don’t sign until you have a lawyer review it and advise you. Here is part of what you should know about canceling purchase agreements.

Low Income Housing Choices

Are you looking for low priced housing options due to having a smaller income?

With home prices having skyrocketed across the country over the last few years it has been harder than ever to find affordable housing.

It has been a crazy seller’s market characterized by bidding wars with many homes selling over the asking price.

It hasn’t been the kind of market that has been kind to those looking at housing for low income. There is the chance that things could be shifting a bit in some markets across the country.

It raises the possibility to find some housing options that won’t be priced out of your budget.

Existing home sales fell almost 6% in July compared to the month prior, dropping to a seasonally adjusted annualized rate of 4.81 million units, according to new data from the National Association of Realtors published this week.

Built a cottage on the site. Construction site. Wooden frame of the home from a bar. The house wooden foundation. Building of houses under the key. Production of wooden houses.

That marks the slowest pace of sales since November 2015, with the exception of a brief slide at the beginning of the COVID-19 pandemic. Compared to a year earlier, sales are down almost 20%, the NAR added.

NAR Chief Economist Lawrence Yun said that in terms of economic impact, “we are surely in a housing recession”. He added that “builders are not building”, citing a report earlier this week that new home starts are down 10% from a year earlier.

“However, are homeowners in a recession?,” he asked. “Absolutely not. Homeowners are still very comfortable financially.”

The NAR’s July numbers are based on home sale closings, so they relate to contracts that were mostly signed in May and June. It’s known that mortgage rates jumped higher in June, when the average 30-year fixed loan mortgage crossed the 6% barrier. Since then, rates have settled into the mid-to-high 5% range. That’s still way up from the beginning of the year, when rates were hovering at around 3%. It means housing affordability took a real hit in June, especially when coupled with rising inflation.

If you’re in the market for a house, you know that times are tough. Even though sales are slowing prices remain at an all-time high. With the recent passage of President Biden’s Inflation Reduction Act, many first-time home buyers were optimistic that this bill might help lower housing costs. But, exactly what’s included in the Inflation Reduction Act? And how does it benefit home buyers, homeowners, and real estate investors?

If you want to learn the answer to these questions, and more, then you’re in the right place. In this guide, we’ll break down everything that’s happening in the housing market right now and whether this new law affects it.

 

Why Are Housing Costs Rising?

Before we dive into whether or not the Inflation Reduction Act affects housing costs it’s important first to understand why they’re rising. You’ve probably heard that there’s currently more demand than supply in the housing market.

There are two reasons for this. First, pandemic-related restrictions delayed the construction of many new homes for months or even years. Second, supply chain issues and inflation have made it more expensive to build new homes.

As home-buying demand cools from the record pace of 2021, competition is now hottest for the lowest-priced homes as mounting affordability obstacles stretch buyers’ budgets, the latest Zillow analysis has found.

Throughout most of the pandemic, buyers shopping in the middle and top price tiers faced the strongest competition — inventory was relatively lower, and there were more sales. Now, inventory for the least expensive homes is tightest while the sales gap has closed.

“Buyers are stretched thin when it comes to affordability, and they are flocking to the lowest-priced homes on the market to get their foot in the door,” said Zillow senior economist Nicole Bachaud. “Still, the less frenzied market compared to last year will feel like a breath of fresh air for those buyers who haven’t been priced out. It’s not yet a buyers market, but it’s becoming a better time to buy, with more time to consider options and less chance of being dragged into a bidding war. Demand is lighter for homes at the top end of the market, and owners appear to be reluctant to sell and move to a different home that will presumably come with a much higher monthly payment at today’s mortgage rates.”

Shifts in inventory, sales and price cuts show the market is in the midst of rebalancing after perhaps the most competitive period ever. Home sellers are adjusting their expectations to the current reality, and buyers have more negotiating leverage than they have had since the onset of the pandemic. Still, home prices are at or near record highs, pushing buyers who remain in the market toward homes in the lower end of the price range.

At the end of July, inventory in the most expensive third of the housing market was up 11% month over month, and 19.3% higher than a year earlier. Similarly, inventory in the middle third was up 12.7% month over month and 17.3% annually. Inventory is growing in the lowest-priced third as well, but only 11.2% month over month and 10.4% year over year. During the same period in 2021, inventory in the least expensive tier was growing on a monthly basis at nearly twice the rate of the most expensive homes.