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.”
Advertisement
Related Stories
Off-Site Construction
New Study Examines Barriers and Solutions in Manufactured Housing
The study from Harvard's Joint Center looks at the challenges faced by developers using manufactured housing and how they're overcoming those barriers
Affordability
The Disappearing Act That Is Middle-Income Housing
An expert weighs in on the diminishing supply of middle-income housing, which is particularly acute in California, and what to do about it
Off-Site Construction
Utah Passes Bill to Regulate Modular Construction at the State Level
Goals for housing innovation and affordability meet in Utah's passage of a new bill that establishes a statewide modular construction program