Even as sparse housing inventory stimulates demand, increasing financial challenges for buyers are forcing home sellers to lower prices to close deals. red fin the study report found.
In the four weeks ending Sept. 24, 6.5% of homes for sale in the U.S. recorded price reductions, up from 5.8% the previous month, brokers said.
According to , in some markets, more than 50% of active listings have experienced price reductions. Altos Research. The five metro areas with the highest percentage of discounted properties for the week ending September 22 were Wenatchee-East Wenatchee, Washington (53%); Idaho Falls, ID (52%); Carson City, NV (52%); Austin-Round Rock-San Marcos, TX (52%). and Waco, Texas (51%).
Due to the lack of supply, prices are generally on the rise. The median U.S. home sales price rose 3% year-over-year to $420,846 in August, marking the largest annual increase since October 2022. Additionally, mortgage interest rates have remained above 7% for about two consecutive months, making financing costs extremely high. The average principal and interest payments for borrowers who purchased a home with a 30-year fixed-rate loan reached a record high of $2,306 in July, according to . Black KnightMortgage Monitor Report. Including taxes and insurance, most buyers today are approaching $3,000 or more.
Accurate pricing is paramount
“When someone sells a home, price is absolutely the number one, most important factor,” says real estate agent Robert Andert. minnesota real estate teamhe told HousingWire in an interview in July. “So even in the current market where demand is high, if a home is priced too high, people won’t necessarily move quickly.”
Meanwhile, there are far fewer homes on the market, and total inventory is down 15% from a year ago, according to Redfin. But on the other hand, homebuyers are also becoming more price-sensitive as monthly payments exceed record highs.
“Buyers are being selective and don’t want to pay a dollar more than they have to,” the report said.
Increasing inventory of homes for sale
Therefore, homebuyers are encouraged to negotiate with sellers who appear willing to make concessions. However, the inventory of homes for sale is on the rise in late September, a highly unusual trend for this season, Mike Simonsen of Altos Research wrote in an article in Housing Wire this week. It pointed out. This gives buyers a little more leeway and allows them to choose from more home options.