The CNBC Housing Market Survey reveals that 44% of real estate agents now perceive a balanced market between buyers and sellers, a notable increase from 30% last year. This shift is attributed to a slight rise in home sales, which were up 3% year-over-year in May, driven by increased supply and more realistic pricing from sellers.
Agents report fewer price cuts, with only 57% indicating at least one price reduction in their listings, down from 89% previously. Although home prices remain slightly elevated, with a 1% increase year-over-year according to the S&P CoreLogic Case-Shiller index, asking prices have dropped 2.5% annually, marking the largest decline since 2017.
Additionally, contract cancellations have decreased, suggesting improved buyer confidence. However, concerns over mortgage rates have risen, with 37% of agents citing it as a primary worry, up from 26% at the end of last year. The average 30-year fixed mortgage rate peaked at 6.75% in May but has since stabilized around 6.6%.
While inventory has increased to 1.1 million homes, agents express a more cautious outlook, with only 19% expecting sales to improve soon, down from 48% last year. This reflects a broader sentiment that, despite a more balanced market, high mortgage rates continue to dampen optimism among real estate professionals