10 Markets Where Sellers Are Cutting Home Prices the Most

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The share of real estate listings with price reductions in September was 19.5%, compared to 11% the previous September.

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Sellers slashed their asking prices on about one in five U.S. housing listings in September, data showed today. The price declines come as higher mortgage rates increase the cost of financing a home purchase, weighing on both buyers and sellers.

The share of listings with price cuts in September was 19.5%, according to Realtor.com’s Housing Report, a 2022 high and up from 11% last September. (barrons and the company that operates Realtor.com are both owned by News Corp.)

Some metropolitan areas experienced more frequent reductions in September than others. Among the 50 largest metropolitan areas, the share of listings with price reductions was highest in Phoenix; Austin; Vegas; Denver; Sacramento, California; Dallas; Tampa, Florida; Nashville, TN; Portland, Oregon; and Jacksonville, Florida. The share of listings with price reductions in these markets ranged from 44% in Phoenix to 25.7% in Jacksonville.

The latest data shows a reset in sellers’ expectations compared to the same month last year. With the exception of Portland, the metro areas listed above also saw the largest year-over-year increase in listings with price reductions.

Nationally, homes have also taken longer to sell, with the typical home spending seven more days on the market this month than in September 2021. Compared to a year earlier, days on the market grew the most in Raleigh, North Carolina; Austin; Vegas; Phoenix; Charlotte NC; Riverside, California; Denver; Nashville; Orlando, Florida; and Sacrament.

Despite rising price cuts, the median listing price in September remained above year-ago levels in all but two major metro areas: Pittsburgh and New Orleans. The nationwide median listing price was $427,000, representing a 13.9% year-over-year increase, Realtor.com said.

The data is the latest to illustrate the housing market’s rapid shift from the buying frenzy of the start of the pandemic to the current affordability pullback as mortgage rates rise. The average 30-year fixed rate has more than doubled this year as the Federal Reserve tightened monetary policy to fight inflation, according to the weekly.

Freddie Mac

The data.

Rising mortgage rates are one reason the National Association of Realtors earlier this week downgraded its expectations for existing home sales and prices for 2023. The trade group expects that sales are falling at their slowest annual rate since 2012 next year and expects annual price growth. by 1.2%.

Amid the grim news, there’s a potential silver lining for potential buyers: The market slowdown could mean more breathing room for those who were previously sidelined by competition at the start of the pandemic. . “For potential buyers struggling with affordability, you may have more bargaining power than you realize, especially in areas where time on market is increasing,” said Danielle Hale, chief economist at Realtor. .com.

Write to Shaina Mishkin at [email protected]

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