Signs of a cooling housing market are all around us, including evidence that more homeowners are dropping their listing price.
In the week that ended on June 27, 4.3% of houses for sale had lowered their listing price, more than at any point since November 2019—with the exception of one week last August, according to data from real estate company Redfin charted below. The increasing frequency of price drops suggests that the recent uptick in homes for sale is providing a little relief for hungry buyers previously stuck competing in a fierce and scarce housing market.
“The month of June was a clear turning point in the ultra-hot housing market of 2021,” said Taylor Marr, lead economist for Redfin, in a commentary. “As home prices continue to set records, some buyers have hit their limit and are stepping back. At the same time, homes are hitting the market at pre-pandemic levels again, which may finally ease competition and bring some sense of balance to the market. The upshot is that fewer bidding wars could actually keep some on-the-fence buyers in the market and lure back some of the homebuying dropouts.”
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