Last week, we discussed the top-10 most stable housing markets. This week, we are discussing how the cooling housing market is bringing relief to buyers. We will be referencing this article from The Washington Post.
According to a report from Realtor.com, the number of homes on the market the week of July 9th was 28% higher than the number of homes on the market during that same week one year ago.
But, buyers might be able to experience some relief…as long as they can afford a mortgage. According to the new housing reports, more sellers are dropping their prices and more homes are available for sale.
However, these buyers are still battling with the highest inflation rates in over 40 years and mortgage rates that are about 50% higher than they were just a year ago, impacting their budgets and limiting their options.
But, here’s the good news.
Compared to one year ago, more homes have been listed for sale in 13 of the past 16 weeks, a trend that most experts expect to continue. Homeowners who delayed their moving aspirations due to COVID are now more likely to sell their houses and many homeowners have seen their home values rise by over 10% in the last year and are looking to take advantage of the new equity.
According to Realtor.com, homes are continuing to sell quickly, but in many areas, they are staying on the market longer than this same period last year.
While sellers are looking to maximize their home’s value on the open market, they’re also beginning to recognize a shift in the housing market due to higher mortgage rates, increased home values, and inflation rates.
More than three-quarters of the markets analyzed by Redfin Real Estate Brokerage saw more than 25% of sellers drop their prices in June, and in every market, more than 10 percent of sellers lowered their price from their original offer.
The market that had the largest number of sellers drop their prices in June was Boise, where 61.5% of sellers reduced their original listing price.
The other nine markets out of the top 10 with the highest percentage of price drops in June include Denver (51.1 percent), Salt Lake City (51.6 percent), Tacoma (49.5 percent), Grand Rapids (49.3 percent), Sacramento (48.7 percent), Seattle (46.3 percent), Portland, Ore. (45.7 percent), Tampa (44.5 percent) and Indianapolis (44.1 percent).
In the D.C. region, 36.2 percent of sellers dropped their prices.
