US home sellers are cutting prices, especially in these 10 US cities

During the pandemic, home sellers had the upper hand as masses of buyers competed for a limited number of properties. But there are signs that the tide is turning, as a growing number of sellers are now cutting prices.

About 1 in 7 listed properties saw a price reduction in June, about double the rate a year earlier, according to Realtor.com. Some of the hottest markets during the health crisis are now seeing some of the biggest price declines, with nearly 1 in 4 properties in Austin, Texas seeing a price drop and around 1 in 5 homes in Phoenix and Las Vegas seeing a reduction, the report found.

The price cuts come as homebuyers face an affordability crunch. For one thing, the median listing price hit a new high of $450,000 in June, an unaffordable figure for many households. At the same time, borrowing costs have skyrocketed, making it more expensive to fund a mortgage.

More sellers are listing their properties this summer in hopes of securing lucrative deals, which is reducing inventory levels and putting some pressure on sellers’ prices.

“[A]As many homeowners rushed into the summer, ready to put their property up for sale and grab the equity brought by record prices, inventory has improved,” noted George Ratiu, Economist at Realtor.com, in a tweet. this year’s real estate markets – price declines.”


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However, there could be a downside for buyers if some homeowners delay listing their homes because of these trends, Ratiu warned.

“As the number of new listings declines, it raises concerns that the nascent improvement in inventory may prove elusive,” he said.

According to the Wall Street Journal, citing the most recent data available from the National Association of Realtors.

Eight of the 10 cities with the largest price declines in June had seen above-average price appreciation during the pandemic, excluding Sacramento and Colorado Springs, Realtor.com said.

Below are the 10 cities with the highest share of price drops among listed properties in June, according to Realtor.com.

  1. Reno, Nevada: 32.4% of properties suffered price drops
  2. Austin, TX: 32.4%
  3. Phoenix, Arizona: 29.5%
  4. Anchorage, Alaska: 28.5%
  5. Boise, Idaho: 28.4%
  6. Ogden, Utah: 27.4%
  7. Sacramento, California: 25.2%
  8. Colorado Springs, Colorado: 25.1%
  9. Evansville, Indiana: 24.7%
  10. Medford, OR: 23.2%

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