The US housing sector is finally cooling down. For those looking to buy, houses are now on sale in several parts of the country, according to new data.
Sellers cut home prices in June in areas that saw red-hot price appreciation earlier in the pandemic, including Reno, Nev., Austin, Texas and Boise, Idaho, according to Realtor.com. With more homebuyers pulling back amid high mortgage rates and fears of a recession, sellers are responding to the drop in demand.
Realtor.com looked at the 200 largest metro areas in the US and calculated that June had the highest percentage of home listings with price reductions.
(Realtor.com is operated by News Corp. NWSA,
subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, a subsidiary of News Corporation.)
“With buyers pulling back, homes are staying on the market longer and more homeowners are having to cut prices to make a deal,” said George Ratiu, senior economist at Realtor.com.
Ratiu noted that the price cuts were sharper in places that attracted out-of-state buyers before the pandemic.
More cities are expected to join this list. “For buyers, the change means more opportunities in the coming months, especially in autumn and winter,” he said.
The metro area with the largest percentage price reduction in June was Reno. The median home listing price was $677,500. About a third of homes listed in Reno had their prices reduced by sellers.
Austin follows closely, with 32.4% of homes in the area reducing their prices. The median list price for a home in Austin was $620,000.
Phoenix, Ariz. It was a major hotspot behind the epidemic. Now, there has been a surge in homes being listed on the market. A local outlet said more homes are on the market now in Phoenix than before the Great Recession. 29.5% of homes in Phoenix saw price cuts in June. The median home listing price was $548,000.
“Sellers are worried. They missed the peak of the market,” said Christy Ryan, a Phoenix real estate agent at Re/Max Fine Properties. “So they’re selling their homes as fast as they can, but their properties can still fetch higher prices.”
“Gone are the days of bidding wars in most homes,” added Ryan. “If a seller has to sell, they’re cutting their prices to get buyers out there.”
Anchorage, Alaska is fourth on the list, with 28.5% of homes in the area cutting their prices. The median home listing price was $436,000.
Another hot market like Boise, Idaho, Phoenix is also seeing a large share of homes being sold. The decline in home prices is what Rick Palacios, Jr. of John Burns Real Estate Consulting warned Market Watch last month.
No. 6 on the Realtor.com list is Ogden, Utah, where 27.4% of listings are receiving price reductions. The median home listing price is $580,000.
Sacramento, Calif., Colorado Springs, Colo., Evansville, Ind., and Medford, Ore., round out the bottom of the top 10 list. With the exception of Evansville, where the median home list price was $246,000, other spots had median list prices above half a million dollars.
According to Realtor.com, a quarter of home prices in all cities have been cut.
Write to MarketWatch Correspondent Aarthi Swaminathan at [email protected]