Home Buyers Finally Get Some Good News

Rising mortgage rates and the cost of housing have ruined potential home buyers this year. But now there’s some good news.

According to the Redfin real estate agency, the percentage of properties on the market with declining values last July was 21 percent, the highest since 2012, when the information monitoring began.

“Sellers had to lower prices because they were catching up with buyers who were expecting lower prices as the market cooled,” Redfin said in comments attached to the information.

“Sellers had to cut prices because they were catching up with buyers who were expecting lower prices as the market cooled,” Redfin said in a commentary attached to the data.

Rising mortgage rates and the prospect of falling home prices have also made buyers hesitant to pay exorbitant prices, and increased supply has expanded their choices.

To be sure, “Falling prices seem to be staying the same as sellers adjust to a changing market,” the report said.

But prices fell in July, especially in the pandemic boomtown. Nearly 70 percent of homes sold in Boise, Idaho, fell in price, the highest of the 97 metropolitan areas surveyed by Redfin.

Denver came in second with 58%, Salt Lake City with 56.4%, Washington-Tacoma with 54.8%, Tampa with 52.1%, Sacramento with 52% and Indianapolis with 51.4%.

Tips for Sellers.

Given these numbers, Redfin agent Shawna Pendleton has some advice for sellers. “Given that the market has slowed down, and realizing that it can take more than 30 days to close a sale, [your] price is coming home from the start,” she said.

“If someone is selling a good home in a desirable neighborhood, they don’t need to lower the price.”

In another blow to the housing market, the Jilow Housing Balance Index fell 0.1% from June for the first time since 2012, and home prices fell in 30 of the top 50 metropolitan areas.

Compared to $357,473 in June, the current typical home price is $357,107. The decline was part of a gradual trend, including slowing housing starts in May and June.

San Jose Cedes Leadership to San Francisco

San Jose (4.5%) and San Francisco (2.8%), the most expensive major markets in the country, saw the biggest drop in home values in July. This was followed by Phoenix (2.8%) and Austin (2.7%), which rose the most during the pandemic. Obviously, what goes up must go down.

But don’t get too excited, says Zillo. “While the recent decline in prices is a notable development, the housing market is still far from a return to normal,” says the report released with the data.

“As mortgage rates rise and prices rise, typical mortgage payments have increased by more than 60 percent in the last year alone,” Gillow said.