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According to a recent survey by real estate agents, despite a still insufficient number of homes for sale, a record number of Americans think it's time to sell. Nearly 77% of homeowners surveyed said the time was right for the sale, compared to 55% a few years ago.
"With the rapid rise in prices, many consumers have decided to wait to list their homes in the hope of seeing additional price and equity gains," Yun said. "However, with indications that buyers are starting to retreat, price gains will slow and potential sellers feel the timing is right to list and market more properties."
According to the US Census, which follows signed contracts, sales of new homes rose 3.5% in August, month after month. Sales remain well below historical standards for new construction. New home prices are nearing record highs as builders face higher costs for land, labor and especially materials, thanks to new prices on construction products. The supply of new homes for sale is much higher, but the demand is lower due to accessibility issues.
Mortgage rates also rose in August and are now almost a percentage point higher than they were a year ago. Job creation, however, is stronger, as is wage growth, which is driving demand for housing further. Real estate agents predict that total sales this year will be 1.6% lower than in 2017.
Correction: Pending home sales declined 1.8% over the month, according to the seasonally adjusted index of the National Association of Realtors. An earlier version misread the percentage.
WATCH: House prices are at a high price
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