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More Homeowners Dropping Selling Prices

Boise, Idaho is currently a hotspot for price drops as new research from Redfin found that 61.5% of homes listed in the area dropped their prices in June, the largest such drop among 97 of the top metropolitan areas in the country. 

Price drops are a common feature of a cooling housing market as home sellers are contending with apprehensive buyers amid rising mortgage rates and the possibility of a recession on the horizon. Overall, over 25% of home sellers dropped their price in three-quarters of the surveyed metropolitan areas in June. 

The next-biggest came Denver (55.1%) and Salt Lake City (51.6%), each metros where more than half of for-sale homes had a price drop. They were followed by Tacoma, Washington (49.5%), Grand Rapids, Michigan (49.3%) and Sacramento (48.7%). Seattle (46.3%), Portland, Oregon (45.7%), Tampa, Florida (44.5%) and Indianapolis (44.1%)–all of which saw price cuts for nearly half the for-sale homes–round out the top 10. 

Boise also had the biggest increase in the share of listings with price drops from a year earlier, when 25.7% of sellers cut their price. Denver, Salt Lake City and Grand Rapids were also among the 10 metros with the biggest upticks from a year earlier. 

“Home sellers are contending with a rapidly changing market, especially in places where they’re used to their neighbor’s homes getting multiple offers and selling for more than asking price,” said Sheharyar Bokhari, Redfin’s Senior Economist. “Higher mortgage rates and a potential recession are causing prospective buyers in popular migration destinations to press the pause button, and they’re also having a big impact on workers in big job centers who rely on their stock portfolio for down payments. In places like Denver, Seattle and Portland, some buyers feel less confident about their finances in the face of a shaky economy and faltering stock market. Sellers are adjusting their expectations in real time as they realize they may not get the price their neighbor got two months ago.” 

“If demand plateaus in the coming months, price cuts are likely to be less common as sellers realize the market has shifted and price realistically from the start,” Bokhari continued. “But if demand falls further, sellers will continue to play catch-up and cut prices to attract buyers.” 

Click here to view the report in its entirety. 

About Author: Kyle G. Horst

Kyle Horst
Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at [email protected].
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