Asking prices for homes remain in a summer swoon, as sellers adjust to the reality that they cannot get as much for their homes as previously hoped.
The share of homes for sale with price drops reached a record high in July, according to Redfin. More than 15% of homeowners in each of the 97 major U.S. metros surveyed had lowered their asking price during the month.
In some places, the price drops greatly exceeded 15%. Following are the cities with the largest share of homes for sale that saw their asking prices decline during July.
10. Portland, Oregon
Homes for sale in this market with a price drop in July: 48.3% (up from 31.2% one year prior)
Selling your home might be a bit more difficult in Portland, with nearly half of home sellers here dropping their asking prices.
Reports say that luxury homes in the Portland area are especially likely to see price adjustments, largely thanks to a slowdown in the high-paying technology industry.
9. San Diego
Homes for sale in this market with a price drop in July: 49.7% (up from 23.6% one year prior)
Asking prices are dropping in many California cities, including San Diego.
In July, home sales dropped by about 43% year over year, according to the Greater San Diego Association of Realtors.
Homes for sale in this market with a price drop in July: 50.1% (up from 21.7% one year prior)
Gary Nelson, president of Arizona Realtors, tells a local TV station that buyers are now looking at different types of properties than they did six months ago:
“They were looking at a higher price range then and now have to look at a lower price range because of interest rates. Sometimes people are going for smaller square footage. Maybe a different type of home. A town home or a patio home, something along those lines.”
Homes for sale in this market with a price drop in July: 51.4% (up from 31.2% one year prior)
In recent times, Indiana has been one of the “15 States With the Fastest-Growing Economies.” But even states with strong job markets are not immune to the housing cooldown now sweeping the country.
Amy Spillman, a real estate agent with Century 21 Scheetz, tells an Indianapolis TV station:
“I saw my first offer asking for closing costs from a buyer this week. We haven’t seen anybody ask for that for two years, you know.”
6. Sacramento, California
Homes for sale in this market with a price drop in July: 52% (up from 32.5% one year prior)
California’s capital city recently has been home to the fastest-rising rents in the nation. But at least for homebuyers, more affordable housing may be on the horizon, with more than half of sellers now adjusting their price expectations.
Homes for sale in this market with a price drop in July: 52.1% (up from 28.6% one year prior)
Tampa is among “10 Cities Where Home Inventory Is Rising Fast,” with active home listings rising nearly 92% year over year in July.
4. Tacoma, Washington
Homes for sale in this market with a price drop in July: 54.8% (up from 29.6% one year prior)
During July, a whopping 17.2% of buyers backed out of deals in Tacoma. That is a potent sign that the glory days for the local real estate market likely are over.
3. Salt Lake City
Homes for sale in this market with a price drop in July: 56.4% (up from 24.6% one year prior)
Prices have been holding up well in Salt Lake City, but sales are dropping, inventory is growing and more than half of sellers are reducing their asking price.
Homes for sale in this market with a price drop in July: 58% (up from 36% one year prior)
Experts say sellers who price their homes realistically still are doing well in Denver and might even get slightly more than they are asking.
But those who stubbornly refuse to accept the new reality are having to drop their asking price — and in July that included 58% of all Denver sellers, according to Redfin’s analysis.
1. Boise, Idaho
Homes for sale in this market with a price drop in July: 69.7% (up from 29.6% one year prior)
Nearly 70% of sellers in formerly booming Boise are throwing in the towel and accepting that they won’t cash in quite as much as they hoped.
In a press release announcing Redfin’s findings, Boise Redfin agent Shauna Pendleton says many sellers priced their homes too high after hearing what neighbors sold homes for a few months ago:
“My advice to sellers is to price their home correctly from the start, accept that the market has slowed and understand that it may take longer than 30 days to sell. If someone is selling a nice home in a desirable neighborhood, they shouldn’t need to drop their price.”