As mortgage rates spike and whispers of a housing recession cause buyers to delay their home purchases, sellers are beginning to slash their asking prices to rein in what little competition remains. The share of sellers who lowered their asking prices in June rose to 61.5% in Boise, and other overvalued markets like Denver and Salt Lake City saw homes with price cuts rise to 55.1% and 51.6%, respectively, Forbes reports.
Many popular metros became overheated during the pandemic thanks to migrating homebuyers who drove up competition and local home prices. Now, as prices reach unsustainable highs and a growing number of buyers are priced out of home purchases, those cities are most vulnerable to a recession.
Riverside, Calif. topped the list of cities most vulnerable to a recession. Riverside “has highly volatile home prices and it was a hot destination during the pandemic, both for people permanently relocating and those buying second homes,” according to the report. Boise, Idaho came in second, followed by Cape Coral, Fla., North Port Fla. and Las Vegas. Sacramento, Calif., Bakersfield, Calif., Phoenix, Tampa, Fla. and Tucson, Ariz. followed behind as risky markets that could be impacted by a recession.
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