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Housing market: Sellers slashing housing prices in these Western cities

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Home prices across the United States remain higher than ever, according to Thursday, but more and more sellers in certain regional markets “feel forced to eventually lower their prices.” report from Realtor.com..

Last month, the median price rose sharply in 50 of the U.S.’s largest metropolitan areas, offering prices 13% higher than last year, but there were many cases of price cuts in some regions. .. Nationally, price-cut housing surged from 6.2% last year to 10.5% in May.

These cities According to the most price cuts Realtor.com:

  • Austin, Texas is the city with the most price cuts, with price cuts increasing by 14.7%.
  • Prices have been reduced by 12.3% in Las Vegas, Nevada.
  • Prices have been reduced by 11.6% in Phoenix, Arizona.

“This softening seen in these fierce markets may mean that seller expectations have not yet caught up with the dynamic reality of this rapidly changing buyer and seller.” Realtor.com’Post.

As High mortgage rates are starting to cool the market and inventories are starting to rise.. Danielle Hale, Chief Economist at Realtor.com, said most housing markets across the United States “remain in the seller’s market area,” but “the market is a bit easier to buy than we saw last month and will be in the future. I expect it to continue. “

Why are more sellers cutting prices? The three cities of Texas, Nevada, and Arizona are all ranked in the top 10 regions with the most “overrated” home prices. Florida Atlantic University and Florida International University..

Recent analysis may indicate that some regional markets are at higher risk of price cuts than others. luck, We used data from real estate research firm CoreLogic. All five Utah housing markets included in the Fortune / CoreLogic analysis are categorized as follows: “Very low” risk of falling home prices: Logan, Ogden-Clearfield, Salt Lake City, Provoolem, St. George at the southern tip of the state.

Big picture: As the Federal Reserve High interest rates are increasingly pinching homebuyers, Housing inventories nationwide are on the rise. According to the company, the number of new listings on the market in May increased for the first time since June 2019. Realtor.com.. This means that last month’s homeshoppers browsed 8% more active lists compared to last spring’s market.

This could mean that May “could fall as a turning point in the ferocious real estate market that has enthusiastically bought home buyers over the past few years.” Realtor.com report.

  • “We’re seeing more homeowners decide to sell,” Hale said. “Buyers can expect more inventory in the future and can choose more homes.”

Good news for homebuyers, but that doesn’t mean the market is no longer competitive. The US housing market still has a long way to go from the frenzy caused by the COVID-19 pandemic over the last two years.It is reported that there are still only half the number of homes on the market compared to pre-pandemic levels. Realtor.com..

  • “Nevertheless, this recent rise could provide a bit of hope for buyers competing for homes in a bid war and over-demand offers,” the report said.

According to Hale, increasing inventories “eventually slows the pace of sales” and should slow prices. “Prices are still rising in double digits, so it’s far from falling, but prices are growth It may be late. “

What is the current price: In May, the median home prices across the country soared to an even higher of $ 447,000. This is an increase of 17.6% and 35% year-on-year compared to May 2020. Realtor.com..

  • Combining these price increases with high mortgage rates, which are now over 5%, housing funding costs will increase by 50% compared to this time last year.

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