The U.S. housing market is shifting in favor of buyers as home and apartment prices are declining at their fastest pace in two years, Business Insider reports, citing data from Realtor. In July, the share of properties with price declines reached 18.9%, up 3.4% from last July. The median home price in the U.S. fell from $445,000 to $439,950 last month.
The main reason for the price decline was a decrease in demand, which mitigated the supply imbalance that led to record home price growth last year. "First, rates remain higher than expected, meaning less buyer activity," says Ralph McLaughlin, senior economist at Realtor. "Second, the prospect of lower mortgage rates this fall may have prompted some buyers to wait. This has forced sellers to lower prices to attract more buyers.
The 30-year fixed mortgage rate fell slightly last week to about 6.7%. But buyers are expecting even better conditions, especially with the Federal Reserve seemingly poised to cut interest rates in September.
