Nearly 7% of U.S. homes listed for sale posted a price drop during the four weeks ending Oct. 29, on average, according to new data from Redfin (NASDAQ:RDFN).
This percentage is the highest on record, and Redfin attributed this to elevated mortgage rates, which has forced many sellers to lower their asking price in order to attract buyers.
“Some sellers are pricing too high because they have FOMO after their neighbor’s house sold well over asking price two years ago,” said Seattle Redfin Premier agent Patrick Beringer. “While low inventory is driving some competition and relatively affordable homes in popular neighborhoods are still selling fast, they’re getting two or three offers as opposed to 20 offers at the height of the market. With mortgage rates in the 7.5% to 8% range, buyers simply don’t have the budget they would have had two years ago or even one year ago.”
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Of course home sellers will drop the price when no one is making offers. Our government isnt helping the situation at all. People are struggling to put food on the table. Hopefully this madness will end soon.