After several years of a tough housing market, real estate agents are now experiencing more balance. In the second quarter of the year, 44% of agents in CNBC’s Housing Market Survey reported a balanced market between buyers and sellers. This is an increase from 30% in the previous year, when the survey began.
Jeremy Kane, a real estate agent in Denver, noted that both buyers and sellers seem to have some power in negotiations, depending on the home’s location and price. The survey collected responses from 53 agents between June 23 and June 30.
Home sales increased by 3% in May compared to last year, thanks to more available homes and lower prices. Sellers are adjusting their price expectations, as they no longer anticipate large price increases. Bruce Jones, an agent in Nashville, explained that homes priced correctly are still selling well.
The number of agents reporting price cuts has decreased significantly, from 89% in the third quarter of 2022 to 57% this quarter. Although home prices are slightly higher than last year, asking prices in June fell by 2.5%, the largest annual drop since 2017.
In terms of buyer concerns, mortgage rates are now the top worry. In the second quarter, 37% of agents noted this issue, rising from 26% at the end of last year. Mortgage rates, which had dropped to about 5.99%, have fluctuated, with a recent peak of 6.75%. As a result, agents are less optimistic about future sales, with only 19% expecting improvements soon.
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