Sellers on the US Housing Market are cutting prices at the highest rate in nearly 10 years as we enter Spring 2024. Suggesting that home prices in America could be heading down as the year progresses. Particularly in Housing Markets like Texas and Florida, where there is an abundance of inventory and supply.
A new report from Redfin shows that sellers are cut prices of houses for sale in February 2024 at the highest rate of any February since at least 2015. While many of these price cuts are small, the fact that so many sellers are engaging in them suggests that the housing market downturn is worsening.
Likely due to the fact that there are so few homebuyers in the market. Metrics such as Mortgage Applications to buy a house, Existing Home Sales, and Google Searches for Homes for Sale all show near record-low levels of homebuyer demand. Which is now coming at a time that supply and new listings are starting to increase.
Especially in housing markets like Lakeland, FL, Tampa, FL, Dallas, TX, Austin, TX, and Phoenix, AZ. Where inventory has increased significantly over the last 3-6 months. Many of these housing markets have lots of home building and investor activity, which is likely resulting in more supply and downward pressure on prices.