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An increasing share of home sellers are lowering their asking price as rapidly rising mortgage rates cut into buyers’ budgets and homebuying sentiment drops. Price drops are especially common in mid-sized metros in the West–particularly in Utah–many of which had outsized price growth during the pandemic because they were hotspots for people moving in from other parts of the country. 

Nearly half (47.8%) of homes for sale in Provo, UT–located about 45 miles away from Salt Lake City–had a price drop in May, the highest share of the 108 metropolitan divisions in this analysis. Tacoma, WA, had about the same share of price cuts, at 47.7%. Next come Denver (46.9%), (Salt Lake City 45.8%) and Sacramento (44.3%). Boise, ID (44.2%), Ogden, UT (42.6%), Portland, OR (42%), Indianapolis, IN (41.9%) and Philadelphia (41.2%) round out the top 10.