Buyers gain leverage as monthly home-price growth eases

August produced the most buyer-friendly market balance in Redfin’s records. Available homes continued to accumulate while high housing expenses and economic worries held back demand. National prices still edged up, however. Redfin’s seasonally adjusted index increased 0.25% compared with July. The monthly changes were 0.26% for July and 0.27% for June. Against the prior year, August prices were 3.7% higher, marking the strongest annual pace in 12 months.

Redfin’s index examines repeat transactions during the three-month period concluding August 31. The gentler monthly movement does not amount to a national price decline. Many owners have considerable equity, reducing the pressure to take large discounts. Expensive properties also helped sustain the overall reading, particularly through wealthy purchasers in Florida and San Francisco’s technology-centered economy.

Local results were sharply divided. Pittsburgh rose 1%, while San Antonio, San Jose and Baltimore each gained 0.9% for the month. Milwaukee, Warren in Michigan and Fort Lauderdale declined between 0.5% and 0.6%. West Palm Beach registered 10.4% annual growth, and Chicago reached 9.2%. Texas remained weaker: Austin was down -1%, Fort Worth -0.7% and San Antonio -0.4% from the previous year. Seattle slipped -0.1%. In the markets posting annual decreases, more than two sellers were competing for each buyer, strengthening purchasers’ ability to negotiate.