Sellers Are Already Lowering Home Prices in These Cities

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As inflation and interest rates rose in tandem, home prices in some cities across the United States began to decline, or at least level off. According to Redfin Real Estate News, a growing number of home sellers began lowering their asking prices this month, signaling a cooling in the recently inflamed housing market. Redfin attributes the drop to rapidly rising mortgage rates squeezing the budgets of potential buyers, causing a decline in home buying sentiment given recession fears and stock market volatilityand general air of economic uncertainty.

According to Redfin, the areas seeing the most price declines are those that have benefited the most from soaring valuations at the start of the pandemic. Redfin explains, “Price cuts are especially common in mid-size metros in the West, especially in Utah, many of which saw outsized price growth during the pandemic because they were hotspots for people from other parts of the country. Around the United Statesmore than 10% of home sellers lowered their prices this month across all metropolitan areas.

Fortune dubbed this phenomenon “the great deceleration”. People who registered recently put homes in the market find out the demand they anticipated isn’t quite there, forcing them to lower their original asking prices. Giveen that the price of houses in the United States house prices have increased by an average of 34.4% over the past two yearsSurpassing the largest two-year home price increase recorded on the eve of the 2008 mortgage crisis (21.2%), any slowdown is welcome for buyers, but sellers still seem to be adjusting their expectations.

It’s impossible to know exactly when the “perfect” time to buy a home will be, but it looks like the days of heated bidding wars are coming to an end, especially in these 10 American cities, which saw the highest share of price reductions in the past month:

1. Provo, UT

  • Real estate listings that have seen price drops: 47.8%
  • Median selling price: $550,000

2. Tacoma, WA

  • Real estate ads that have seen their prices drop by 47.7%
  • Median sale price: $575,000

3.Denver

  • Real estate listings that have experienced price reductions: 46.9%
  • Median sale price: $614,000

4. Salt Lake City

  • Real estate listings that experienced price drops: 45.8%
  • Median sale price: $556,000

5. Sacramento, California

  • Real estate listings that have seen price drops: 44.3%
  • Median sale price: $610,000

6. Boise, ID

  • Real estate listings that experienced price drops: 44.2%
  • Median selling price: $549,990

7. Ogden, UT

  • Real estate listings that have experienced price reductions: 42.6%
  • Median selling price: $500,000

8. Portland, OR

  • Real estate listings that experienced price drops: 42.0%
  • Median sale price: $570,500

9.Indianapolis

  • Real estate listings that have experienced price reductions: 41.9%
  • Median sale price: $285,000

10. Philadelphia

  • Real estate listings that have experienced price reductions: 41.2%
  • Median selling price: $290,000

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