According to CNBC, after two years of high house prices and fewer homes on the market, listings are at a record high in October 2022, up 33.5% from a year ago. More houses are available, not because of a change in buyer demand, but because houses are staying on the market longer – the average house is staying on the market for 51 days, up 6 days from last year. During the pandemic, more buyers were looking for homes and sellers raised their prices to deal with the increase in demand.
“As the rapid runup in rates reshapes housing market dynamics this fall, both buyers and sellers are taking a step back to recalibrate their plans,” said Danielle Hale, chief economist at Realtor.com.
The slowdown in demand for homes has caused sellers to cut their prices. A full 20% of listings now on Realtor.com have had a price reduction − about twice the share as a year ago.
Still, home prices are not exactly falling yet. The price gains from a year ago are, however, shrinking at the fastest pace on record, according to several surveys.
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