Home sellers are adapting to a new market landscape as buyers pull back amid rising mortgage rates, and in order to hold on to remaining demand, some are relinquishing their tight grip on housing affordability and lowering their asking prices. The median asking price of newly listed homes fell 1.5% during the four-week period ending June 26, while 6.5% of homes for sale each week experienced a price drop, the highest share on record, according to Redfin.
Mild month to month price declines are expected as an overheated market reaches its tipping point and buyers regain some upper ground.
“Data on home-tours,offers and mortgage purchase applications suggest that homebuyers have noticed the shift in power and are no longer leaving the market in droves,” said Redfin chief economist Daryl Fairweather. “Buyers coming back will provide support to the housing market, but between now and the end of year I think the power will continue to shift towards buyers, resulting in mild price declines from month to month.”