A large share of home sellers in pandemic boomtowns dropped their asking prices in July as buyers regained more control over a cooling housing market. Roughly 70% of homes in Boise, ID experienced price drops in July, followed by 58% of listings in Denver, CO and 56.4% in Salt Lake City, UT.
After attracting thousands of out-of-state buyers throughout the pandemic, the nation’s hottest housing markets are rapidly cooling, and sellers are beginning to align their expectations with a slowdown in buyer activity, especially as rising mortgage rates push homeownership out of reach for a growing number of house hunters.
Nationwide, the share of homes for sale with price drops reached a record high in July. Sellers had to cut their prices because they were catching up with buyers, who had come to expect lower prices amid a cooling market. Rising mortgage rates and the prospect of falling home values also made buyers hesitant to pay sky-high prices, and an uptick in supply gave them more to choose from. Price drops are likely to flatten out as sellers come to terms with the shifting market.
Advertisement
Related Stories
Business Management
How 2023's Housing Market Conditions Are Affecting the 2024 Housing Market
Last year ended on an optimistic note, but persistent headwinds still exist to keep 2024 from getting the housing market back to pre-pandemic levels
Affordability
Median US Down Payment Falls by More Than $4,000
The recent decrease in costs is welcome relief for homebuyers, but many West Coast markets remain expensive
Housing Markets
10 Biggest Publicly Traded Home Builders Undeterred by High Mortgage Rates
Together, the 10 biggest builders recorded 77,255 new homes in Q1 2024, an increase of more than 18% from Q1 2023
