In yet another sign that the housing market may be shifting to one that favors buyers, a Redfin report for September shows that the share of homes with price drops reached a record high. According to the online real estate site, more than one in four home-sellers dropped their prices last month, the highest level on record since Redfin began tracking this metric in 2010.
“After years of strong price growth and intense competition for homes, buyers are taking advantage of the market’s easing pressure by being selective about which homes to offer on and how high to bid,” said Taylor Marr, Redfin senior economist. “Many [sellers] are finding their homes are sitting on the market without much interest until they start reducing prices.”
The price drops across the housing market may be a relief to house hunters who are looking for a way to offset recent increases in mortgage rates. Today, conforming no-point 30-year fixed mortgage rates are averaging 4.75 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.15 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.