{"id":3310,"date":"2022-07-14T19:36:37","date_gmt":"2022-07-14T19:36:37","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2022\/07\/14\/home-sellers-are-cutting-prices-in-these-cities\/"},"modified":"2025-03-13T02:44:33","modified_gmt":"2025-03-13T02:44:33","slug":"home-sellers-are-cutting-prices-in-these-cities","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2022\/07\/14\/home-sellers-are-cutting-prices-in-these-cities\/","title":{"rendered":"Home sellers are cutting prices in these cities"},"content":{"rendered":"\n<p>At least 10% of home sellers in the 97 metropolitan areas analyzed by <strong>Redfin<\/strong> dropped their asking prices in June. Over three quarters of the metros in the analysis saw more than 25% of sellers drop their prices.<\/p>\n\n\n\n<p>The formerly <a href=\"https:\/\/www.housingwire.com\/articles\/boise-home-prices-rising-faster-than-any-other-us-city\/\" target=\"_blank\" rel=\"noreferrer noopener\">white-hot metro of Boise, Idaho<\/a> saw both the largest share of home sellers dropping their prices at 61.5%, and the biggest year-over-year increase, as only 25.7% of home sellers dropped their asking prices in June 2021.<\/p>\n\n\n\n<p>Boise was followed by Denver, which saw 55.2% of home sellers drop their asking prices, Salt Lake City at 51.6%, Tacoma, Washington at 49.5%, and Grand Rapids, Michigan at 49.3%.<\/p>\n\n\n\n<p>Redfin attributes the large share of homes undergoing price reductions in these metro areas to the rapid home price appreciation recorded in <a href=\"https:\/\/www.housingwire.com\/articles\/these-are-the-hottest-housing-markets-in-america\/\" target=\"_blank\" rel=\"noreferrer noopener\">the metros<\/a>, as more and more people relocated during the COVID-19 pandemic due to increase remote work flexibility. For example, in Boise, the typical home sold for $550,000 in May, up more than 60% from two years earlier, according to Redfin.<\/p>\n\n\n\n<p>In addition, <a href=\"https:\/\/www.housingwire.com\/articles\/purchase-mortgage-rates-shoot-back-up-to-5-50\/\" target=\"_blank\" rel=\"noreferrer noopener\">rising mortgage rates<\/a> are cutting the <a href=\"https:\/\/www.realtrends.com\/blog\/articles\/the-shift-larry-kendall-on-how-brokers-can-help-agents-navigate-market-changes\/\" target=\"_blank\" rel=\"noreferrer noopener\">purchasing power<\/a> of homebuyers, forcing home sellers to rethink their pricing strategy.<\/p>\n\n\n\n<p>\u201cHome sellers are contending with a rapidly changing market, especially in places where they\u2019re used to their neighbor\u2019s homes getting multiple offers and selling for more than asking price,\u201d Sheharyar Bokhari, Redfin\u2019s senior economist, said in a statement. \u201cHigher mortgage rates and a potential recession are causing prospective buyers in popular migration destinations to <a href=\"https:\/\/www.realtrends.com\/blog\/articles\/buyers-are-canceling-deals-amid-housing-market-volatility\/\" target=\"_blank\" rel=\"noreferrer noopener\">press the pause button,<\/a> and they\u2019re 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&nbsp;<a href=\"https:\/\/www.wsj.com\/articles\/global-stocks-markets-dow-update-07-11-2022-11657525108?mod=hp_lead_pos3\" target=\"_blank\" rel=\"noreferrer noopener\">shaky economy<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.marketwatch.com\/story\/stocks-may-keep-falling-as-this-harbinger-points-to-potential-hit-to-companies-forward-profits-warns-morgan-stanley-11657561715\" target=\"_blank\" rel=\"noreferrer noopener\">faltering stock market<\/a>.<\/p>\n\n\n\n<p>At the other end of the spectrum were El Paso, Texas (13.3%), Newark, New Jersey (14.1%), Honolulu (16.8%), Milwaukee (17.4%) and New Brunswick, New Jersey (17.8%). Redfin attributes the relatively small share of price drops in these metros to more affordable home prices, that fall close to or below the <a href=\"https:\/\/www.redfin.com\/news\/housing-market-may-home-sales-decline\/\" target=\"_blank\" rel=\"noreferrer noopener\">national median sales price<\/a>.<\/p>\n\n\n\n<p>The share of homes with a price drop rose from a year earlier in all but four metros \u2013 Elgin, Illinois; Lake County, Illinois; Chicago, and Fresno, California, which saw year-over-year decreases.<\/p>\n\n\n\n<p>\u201cIf 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,\u201d Bokhari said. \u201cBut if demand falls further, sellers will continue to play catch-up and cut prices to attract buyers.\u201d<\/p>\n\n\n\n<p>Redfin said its economists and agents are currently advising prospective sellers to list their homes sooner rather than later as they expect price growth to continue to slow. In addition, they recommend that sellers price their homes slightly lower than comparable properties in the neighborhood to increase interest in the property and avoid having to undergo price drops.<\/p>\n\n\n\n<p>\u201cToday\u2019s sellers feel they\u2019ve missed out on the hot sellers\u2019 market and in some ways they have. They\u2019re probably not going to get multiple offers and sell their home way over asking price, but&nbsp;we can still sell a home for a fair price,\u201d Andy Potarf, a Denver-based Redfin agent, said in a statement.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In all of the 97 metro areas analyzed by Redfin, at least 10% of home sellers dropped their asking prices in June.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-3310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Home sellers are cutting prices in these cities - 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