Home prices are finally starting to fall – and they dropped the most in these 3 cities
Nest Seekers International chief economist Erin Sykes weighs in as high interest rates continue to hurt the housing market on 'The Bottom Line.'
The housing market may finally be shifting in buyers' favor.
In a good sign for homebuyers, the share of available listings that saw a price cut jumped to 18.9% in July – up 3.4% from the same time last year, and the highest level in two years, according to a new report published by Realtor.com.
Price cuts are atypical in July, which is usually a peak time for home sales. But this year is different, because sellers are trying to lure back lukewarm buyers who are facing both high costs and steep interest rates.
«First, rates remain higher than expected, which means there is less buyer activity,» said Ralph McLaughlin, Realtor.com senior economist. «Second, the prospect of lower mortgage rates coming this fall may have induced some buyers to wait. This combo has led sellers to lower their prices in order to attract more buyers.»
MORTGAGE CALCULATOR: SEE HOW MUCH HIGHER RATES COULD COST YOU
The report also showed that median home prices fell last month to $439,950 – down from $445,000 in June.
Homes in Centreville, Maryland, on April 4, 2023. (Photographer: Nathan Howard/Bloomberg via Getty Images / Getty Images)
Among the 50 metro areas tracked by Realtor.com, a whopping 47 saw their share of price reductions increase compared with last year.
Cities that saw the biggest increases in the share of price reductions are Tampa, Florida, at 9.7%; Charlotte, North Carolina, at 9.5% and Phoenix, at 9.4%.
«These are places where sellers have had a good run over the past few years with rising prices, but with the effects of higher rates fully settling in, sellers are having to come
Read more on foxbusiness.com
