Survey results show the number of buyers asking for repairs based on the inspection has more than doubled over the past 12 months, while the number of sellers refusing to make repairs has dropped to zero. Additionally, the share of sellers who have sold below their asking price has risen from 18 percent in February to 31 percent in July. George Ratiu, Manager of Economic Research for the NAR's website, says things are getting back to normal, "Our survey shows that the overheated housing market of the past two years, which predominantly favored sellers, is beginning to regain a sense of normalcy, which is welcome news for home buyers."
Edward Seiler, MBA's Associate Vice President, housing economics, and Executive Director, Research Institute for Housing America, says the improvement was modest but widespread, "Affordability conditions improved modestly in most of the country in July, as slightly lower mortgage rates and a decrease in the median loan amount led to the typical home buyer's mortgage payment falling $49 from June.". The minor improvement is a welcome change for buyers after recent increases to home prices and mortgage rates.
In fact, according to one new analysis, the number of days homes typically spend on the market just improved for the first time in two years. The data, from the National Association of Realtors'® (NAR) consumer website, shows homes for sale now typically spend five more days on market than they did last year at the same time - that's the first improvement since June 2020. While that's undoubtedly good news for prospective home buyers, it doesn't mean they can take too much time. The typical home still sells 22 days faster than it did between 2017 and 2019.
According to the most recent S&P Case-Shiller Home Price Indices, price increases - while slower than before - are still substantial. Craig J. Lazzara, Managing Director at S&P, says this year's increases continue to outpace the typical year, "It's important to bear in mind that deceleration and decline are two entirely different things, and that prices are still rising at a robust clip. For the first six months of 2022, in fact, the National Composite is up 10.6 percent. In the last 35 years, only four complete years have witnessed increases that large." While prices are still up significantly so far this year, they're expected to continue to decelerate through the end of 2022.