- Home prices are being cut at the fastest pace in two years.
- The share of home listings that saw a price cut rose to 18.9% in July, up 3.4% from last year.
- Demand is cooling as buyers wait for mortgage rates to ease, Realtor.com said.
Homebuyers are finally starting to see the housing market shift in their favor, with home prices being slashed at the fastest pace in two years, according to Realtor.com.
The share of available listings that saw a price cut in July rose to 18.9%, up 3.4% compared with levels recorded in July last year. Those cuts have helped push down home prices across the country, with the median US home price dropping from $445,000 to $439,950 last month, the real-estate-listings site said in a recent report.
Price cuts have largely been driven by lower demand, alleviating some of the imbalances that pushed prices to record highs over the past year.
“First, rates remain higher than expected, which means there is less buyer activity,” Ralph McLaughlin, a senior economist at Realtor.com, said in a statement. “Second, the prospect of lower mortgage rates coming this fall may have induced some buyers to wait. This combo has led sellers to lower their prices in order to attract more buyers.”
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