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Many homes for sale in July nationwide experienced price drops, especially those in cities that saw an influx of residents during the pandemic. Boise, Idaho, led the pack with nearly 70% of houses on the market falling in price.
As the housing market cools, many metropolitan areas saw large shares of home sellers drop their asking prices last month, according to a recent report from Redfin, a national real estate brokerage.
In Boise, Idaho, nearly 70% of homes for sale had a price drop in July—the largest share of the country’s 97 most populous metros analyzed. At least 15% of homes in each city included in the study had lower prices last month.
Joining Boise in the top 10 cities with the largest share of home price cuts in July were: Denver (58%); Salt Lake City, Utah (56.4%); Tacoma, Washington (54.8%); Tampa, Florida (52.1%); Sacramento, California (52%); Indianapolis (51.4%); Phoenix(50.1%); San Diego (49.7%); and Portland, Oregon (48.3%).
Of those, more than half—Boise, Denver, Tacoma, Sacramento, Phoenix, San Diego and Portland—were among the fastest cooling housing markets in the first half of this year “after attracting scores of eager homebuyers during the pandemic,” the report said.
Sellers are dropping their prices to catch up with buyers, who may be more hesitant to purchase homes as mortgage rates increased, the report said. Economic uncertainty and an increased supply in homes available could have also impacted buyers’ demand.
“Individual home sellers and builders were both quick to drop their prices early this summer, mostly because they had unrealistic expectations of both price and timelines,” said Boise Redfin agent Shauna Pendleton in the report. “They priced too high because their neighbor’s home sold for an exorbitant price a few months ago, and expected to receive multiple offers the first weekend because they heard stories about that happening."
The national median home sale price came down 0.7% from its record-breaking June peak during the four weeks ending July 10, according to Redfin. The U.S. home supply posted its first year-over-year increase since August 2019 as pending sales continued to slide. These changes are attributed to buyers reaching their cost breaking points—not just on home prices and mortgages, but also food, transportation and energy, Redfin said.
Cities Where Home Sale Prices Dropped the Most in July
|Salt Lake City, Utah||56.4%|
|San Diego, California||49.7%|
|Las Vegas, Nevada||44.8%|
|Fort Worth, Texas||44.8%|
|North Port, Florida||44.7%|
|San Antonio, Texas||44%|
|Colorado Springs, Colorado||43.7%|
|Grand Rapids, Michigan||42.4%|
|San Jose, California||40.9%|
|Cape Coral, Florida||40.6%|
To read the full report, click here.
Molly Bolan is an assistant editor for Route Fifty.