The cracks in the housing market are growing larger as sellers slash prices

The cracks in the housing market are growing larger as sellers slash prices, per Redfin.

The share of US home sellers dropping prices is at a record high, per Fortune.

The housing market, known for its resilience and soaring prices, showed signs of a crack in October, particularly among sellers. Despite the continuous growth in existing home prices for seven consecutive months, a record number of sellers opted to lower their listing prices, marking the highest percentage in 11 years, according to a Redfin report.

Approximately 7% of homes for sale in the U.S. experienced a price drop in the four weeks ending October 29, surpassing the average monthly rate of 3.6%. The challenges of elevated mortgage rates and home prices are not only affecting buyers but also impacting sellers. The pressure from higher mortgage rates, reaching about 8% in October, has prompted sellers to adjust prices to accommodate buyers facing increased monthly payments.

The current scenario, characterized by a 15% year-over-year drop in existing-home sales activity in September, highlights the delicate balance between affordability and market dynamics. To spur more significant movement in the housing market, experts suggest that either mortgage rates need to decrease or home prices should adjust to enhance overall affordability and transaction activity.

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