Higher mortgage rates have home buyers feeling more hesitant. But if you’re a buyer who’s concerned about declining affordability conditions, there may be some encouraging news in a recent release from the National Association of Realtors’ consumer website. The data shows a rising number of homes for sale have had a price reduction. In fact, the share of homes with price reductions was up 10.3 percent to 20.9 percent in October. For comparison, price reductions were at 17 percent in 2019 and 21.2 percent in 2018. In other words, the current number is fairly normal and in line with pre-pandemic levels, but certainly higher than it was the past two years when home prices were skyrocketing. Regionally, price reductions were most common in the West and South, with Phoenix, Austin, and Las Vegas leading the list of metros with the highest share of price cuts. But while the number of price reductions has grown significantly, prices remain high. In October, the median listing price was $425,000. (source)
