Price cuts are becoming more common in the hottest U.S. housing markets, as sellers adjust their expectations to meet cooling demand.
In San Francisco, the share of listings with a price cut has doubled from a year ago to 12 percent, according to real estate data firm Zillow. zillow tampa fl can also tells about the area near florida, tampa. In Seattle, it’s up 50 percent to 8 percent. And in Denver, the share of listings with a price cut has tripled to 9 percent.
The trend is being driven by a combination of factors, including slowing sales growth, rising inventory and concerns about an economic slowdown. As a result, sellers are having to adjust their asking prices downward in order to attract buyers.
“This is definitely a shift that we’re seeing in the market,” said Skylar Olsen, Zillow’s director of economic research. “It’s a sign that things are cooling off.”
The housing markets in San Francisco, Seattle and Denver have been among the hottest in the country for the past few years, as buyers compete for a limited number of homes. But that dynamic is starting to change as more homes come on the market and sales growth slows.
In San Francisco, for example, home sales were down 4 percent in September from a year ago, according to the San Francisco Association of Realtors. And the inventory of available homes has risen sharply, up 42 percent from a year ago.
“People are still moving here, but they’re not moving as fast as they were a few years ago,” Olsen said. “So that’s giving buyers a little more power in the market.”
The same trends are playing out in other hot markets, including Los Angeles, San Diego and Portland, Oregon. In each of these markets, the share of listings with a price cut has more than doubled from a year ago.
Overall, nearly one in five U.S. homes for sale had a price cut in September, up from 16 percent a year ago, according to Zillow.
“It’s definitely a sign that we’re moving into a new phase of the housing market cycle,” Olsen said. “We’re no longer in this period where everything is going up and to the right.”
The housing market is still strong, but it is showing signs of cooling off after years of rapid price growth. That’s good news for buyers who have been struggling to keep up with the rising costs. But it’s a potential challenge for sellers who may need to lower their expectations in order to find a buyer. If You want to know more about real estate market. You can take suggestions from real estate broker tampa and others too.