Good news for real estate professionals who work with first-time homebuyers on a budget: modest, affordable homes are starting to appear on the market at a consistent clip after nearly two years of extremely low inventory and rising real estate values. According to a recent Business Insider report, new listings increased by 6.5%. The majority of these listings were competitively priced for purchasers hoping to enter the market after being priced out of it during the real estate boom of 2020.

Better still?

The median listing price increased less quickly in July compared to the previous month, keeping the U.S. median home price at a comfortable $385,000.

Here are three major reasons why this seemingly minor shift is significant, even though there isn't enough evidence to call an end to this historically extraordinary market.

#1: The Change Offers Fresh Real Estate Brokers A Chance To Enter The Market

To almost everyone's astonishment, the pandemic's early months saw one of the most fiercely competitive seller's markets in history.

While the competition was good for listing agents, it was harder for new agents who wanted to deal with purchasers to find inventory to present to prospective buyers, if they could even find prospective buyers who could afford to buy in at the excessive market pricing.

Now that there is a smaller, more reasonable inventory available, new real estate agents may have an easier opportunity to deal with first-time buyers or budget-conscious consumers. Fortunately, this is a typical demographic for new real estate brokers to begin with, so it benefits both new buyers and new agents.

#2: Sellers Might Be More Receptive To Comments, Which Might Result In A Bigger Commission

Sellers may be more receptive to their real estate agent's advice on getting their properties ready for the market now that the market is beginning to teeter slightly in the buyer's favor.

Because they are confident that their property will sell anyway, sellers may be tempted to advertise their homes fast during a hot seller's market without much thought for curb appeal and other finishing touches that can greatly improve the quality of bids.

When clients refuse to make those finishing touches, it can be irritating for a real estate agent because they might increase the property's value and result in a greater commission.

Sellers might be increasingly responsive to best listing strategies as inventory continues to become available.

#3: It's A Fantastic Way To Re-Engage Leads In Your Pipeline, Which Is Terrific News

Sending out an email blast, making a social media post, or even making a few calls to your warmer leads to inform them that things are starting to change can be a wonderful way to re-engage those connections if you work primarily with buyers.

Asking leads now will help you determine whether their objectives have changed, how they feel about a smaller "starter home," and whether they're ready to look at anything that has opened up or might open up in your neighborhood.