Those thinking about buying a home have probably heard all the tales of woe from other buyers out there: Sticker shock, getting outbid on the home of their dreams, or not being able to find a property with everything they were looking for within their budget. Still, those stresses may be easing somewhat now that we’re past the most competitive season for home buying.
The median price of an existing home dropped for the second month in a row to hit $253,500 in August after reaching an all-time high earlier this summer, according to the most recent National Association of Realtors® report. The median price of a previously lived-in abode had hit $263,300 in June.
“Median sales prices typically decline a bit heading into the fall,” says realtor.com Chief Economist Danielle Hale. “Summer is a big time for home purchases, so that families settle in before school starts in the fall. In the fall, the types of homes that sell are smaller for people without kids. So they tend to be less expensive.”
Existing homes are also cheaper than newly constructed ones that come with all the latest appliances and finishes. The median price of a new home was $313,700 in July—23.7% more than an existing one, according to the most recent data available from the U.S. Census Bureau and U.S. Department of Housing and Urban Development.