10 Housing Markets With the Most Sellers Dropping Prices

Anxious home seller
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What was previously a mere cooling of the housing market may be settling into a deeper freeze.

In many markets, more than 40% of home sellers dropped their prices during the month of May, according to real estate brokerage Redfin.

The trend started in earnest during April, when nearly 20% of home sellers began lowering their asking price. But now, it appears to be accelerating.

According to Redfin:

“Price drops are especially common in mid-sized metros in the West — particularly in Utah –many of which had outsized price growth during the pandemic because they were hotspots for people moving in from other parts of the country.”

Following are the cities with the largest share of homes for sale with a price drop during May 2022.

10. Philadelphia

Philadelphia neighborhood homes
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Homes for sale in this market with a price drop: 41.2%

Sellers are increasingly likely to cut their asking price in the City of Brotherly Love. Perhaps getting a break on your next Philly home will ease the sting of living in a city that lands in the middle of the “15 Cities Where People Pay the Most in Taxes.”

9. Indianapolis

winter scene homes in Indianapolis, Indiana
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Homes for sale in this market with a price drop: 41.9%

Rick Palacios Jr., director of research for John Burns Real Estate Consulting, looked into his crystal ball and told the IndyStar in May 2021 that Indianapolis housing prices were likely to cool in 2022. Recent trends appear to be bearing out his prediction.

If you are moving here, you will be cheered to know that it is among the “The 15 Cleanest Big Cities in America.”

8. Portland, Oregon

Homes in Portland, Oregon
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Homes for sale in this market with a price drop: 42%

A combination of rising mortgage rates and expensive home values means that at least 168,000 Portland-area households have been priced out of the local housing market since December, according to findings by the Oregon Office of Economic Analysis.

The fact that there now is a smaller pool of potential buyers might be pressuring sellers into dropping their asking prices here.

7. Ogden, Utah

Ogden, Utah
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Homes for sale in this market with a price drop: 42.6%

Homebuyers in Ogden have been paying an average of 64.73% more than they should for homes, according to researchers at Florida Atlantic University and Florida International University.

Perhaps that trend of rising prices has begun to catch up to sellers in Ogden and other cities in Utah. The Beehive State appears on this list three times. No other state appears more than once.

6. Boise, Idaho

Boise, Idaho neighborhood
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Homes for sale in this market with a price drop: 44.2%

Idaho had the largest population growth among U.S. states during 2021. But perhaps the welcome-wagon celebrations were a bit too optimistic, and now the hangover is setting in. For a second consecutive month, Boise saw more than 40% of homeowners cut their asking prices.

Local real estate agent Shauna Pendleton tells Redfin that Boise no longer is attracting as many new residents. Potential buyers are discouraged by the overheated market and the fact that the quiet, slow-paced lifestyle that once existed here has faded into memory:

“Many buyers are backing out of the market — and even backing out of deals — and some sellers are responding by dropping their price.”

5. Sacramento, California

Homes in Sacramento, California
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Homes for sale in this market with a price drop: 44.3%

A cooling trend that began in April got frostier in California’s capital city during May. Buyers will find price cuts welcome in one of the “15 Cities Where Homebuyers Make the Biggest Down Payments.”

4. Salt Lake City

House in 1991
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Homes for sale in this market with a price drop: 45.8%

As in Ogden, home values soared for a long time in Salt Lake City. But gravity is having the last laugh here: More inventory has come online, and sellers have had to reduce their asking prices to stay competitive.

3. Denver

Houses in Denver, Colorado
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Homes for sale in this market with a price drop: 46.9%

After years of riding a Rocky Mountain sugar high, sellers here now have to adjust their expectations about what their homes are worth. Local real estate agents are warning of additional price drops if interest rates climb higher and the economy dips into recession.

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2. Tacoma, Washington

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Homes for sale in this market with a price drop: 47.7%

Local real estate broker Derek Eyring is among those celebrating the cooling trend in Tacoma. He recently told The News Tribune:

“Historically, if you look back, in a balanced market sellers still have a 4% to 5% appreciation every year, which is reasonable, and buyers are able to purchase properties and not go through all of this. So I think it’s better for buyers, better for sellers, and better for our community.”

1. Provo, Utah

Home in Provo Canyon, Utah
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Homes for sale in this market with a price drop: 47.8%

In January, the Deseret News suggested that folks who recently bought homes in Provo and other Utah towns “might have paid too much.”

Provo’s appearance at the top of this list suggests the newspaper was right.

However, price drops are unlikely to go on indefinitely here or in other cities. As Daryl Fairweather, Redfin chief economist, notes in a press release:

“As more sellers come to terms with the slowing market, fewer homes will have price drops.”

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