Homebuyers may be able to get some relief – if they can qualify for a mortgage, that is. More sellers are lowering their prices and more homes are available for sale, according to two new housing reports.
Still, buyers are grappling with inflation at its highest level in 40 years, impacting their budgets and mortgage payments 50% higher than if they had bought a home a year ago.
On the good news: the number of homes for sale in the week ending July 9 was 28% higher than the number of homes on the market in the same week a year ago, according to a report by Realtor.com.
More homes have come up for sale compared to a year ago in 13 of the past 16 weeks, a trend that is expected to continue. Homeowners who delayed their move due to coronavirus concerns are more likely to sell now. Additionally, many homeowners have seen the value of their homes increase by double digit percentages over the past year and want to take advantage of this new equity.
Homes continue to sell quickly, according to Realtor.com, but in many areas they are staying on the market longer than during the same period last year.
As sellers want to get the maximum possible price for their homes, they are also beginning to recognize the shift in the housing market due to rising mortgage rates, rising home values and pressure from the economy. ‘inflation. More than three quarters of markets analyzed by real estate brokerage Redfin saw more than 25% of sellers lower their prices in June, and in every market, more than 10% of sellers lowered their price from their initial offer.
The market that saw the most sellers cut prices in June was Boise, where 61.5% of sellers cut their listing price, according to real estate brokerage Redfin.
The other nine markets in the top 10 with the highest percentage of price drops in June are Denver (51.1%), Salt Lake City (51.6%), Tacoma (49.5%), Grand Rapids ( 49.3%), Sacramento (48.7%). ), Seattle (46.3%), Portland, Oregon (45.7%), Tampa (44.5%) and Indianapolis (44.1%).
In the DC region, 36.2% of sellers lowered their prices.