MoneyWatch: Existing home sales fell in June
Home sellers outnumber buyers during pandemic As a herd, they fought over a limited group of properties. However, there are signs that the tide is turning as more sellers cut prices.
According to Realtor.com, about one-seventh of listed properties saw price cuts in June. This is almost double the previous year. Some of the hottest markets amid the health crisis are now witnessing the steepest price cuts, with nearly a quarter of properties in Austin, Texas seeing prices fall, while Phoenix and Las Vegas saw prices drop by about a quarter. One-fifth of homes see prices fall. Report found.
Price cuts as homebuyers face an affordability pinch. Meanwhile, the median listing price he hit a high of $450,000 in June. This is a figure that is out of reach for many households. At the same time, borrowing costs are skyrocketing, making mortgage financing more expensive.
More sellers are listing properties this summer in hopes of winning lucrative bids. This eases inventory levels and puts price pressure on sellers.
"[A]Many homeowners rush into the summer to list their properties and pay for them, brought in by record-high prices." We have improved our inventory as we are ready to pick up more shares," said Realtor.com economist George Ratiu. tweet. “This has brought a welcome sign to the real estate market this year – price cuts.”
But if some owners postpone listing their homes because of these trends, Ratiu warned that it could be a downside for buyers.
"As the number of new listings dwindles, there is growing concern that initial improvements in inventories will be elusive," he said.
In May, housing affordability across the United States hit its lowest level since July 2006, when home prices were soaring before the crash that sparked the Great Recession in 2008. Did.According to , The Wall Street Journal cites the latest data available from the National Association of Realtors.
According to Realtor.com, of the 10 cities with significant price cuts in June, eight (excluding Sacramento and Colorado Springs) saw higher than average price increases during the pandemic. was seen
Below are the 10 cities with the largest share of price reductions among properties listed in June, according to Realtor.com.
- Reno, Nevada: 32.4% of properties reduced
- Austin, TX: 32.4%
- Phoenix, AZ: 29.5%
- Alaska Anchorage, Idaho: 28.5%
- Boise, Idaho: 28.4%
- Ogden, Utah: 27.4%
- Sacramento, CA: 25.2%
- Colorado Springs, CO: 25.1%
- Evansville, IN : 24.7%
- Medford, Oregon: 23.2%
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