1 in 4 Sellers Cutting Price as Market Cools
Altos Research: Rising rates and economic shifts have slowed down super-eager buyers as the market shifts to “much more normal conditions.”
NEW YORK – Altos Research reports that prices have been cut on more than 25% of homes on the market right now.
“Rising rates and the shift in the economy has slowed down the super-eager buyers,” says Mike Simonsen, co-founder and CEO of Altos Research. “We’re shifting from a real buying frenzy to much more normal conditions.”
He says about a third of homes take a price cut under normal conditions, but that was only 14% this spring amid high demand and low inventory.
“Sellers in the last two years can overprice their home and still get offers – that condition of the frenzy is gone, so it’s a much more normal market,” Simonsen says. “By July, expect to be back to our normal conditions nationally. We’ve been hotter than normal for over two full years since the start of the pandemic. By August, sellers who aren’t prepared will be surprised.”
He says there’s “nothing in the data yet that shows an indication of home prices crashing, [but] there is an indication of probably zero home price appreciation in 2023.”
Source: MarketWatch (06/15/22) Swaminathan, Aarthi
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