Roughly one in 15 (6.5 percent) homes for sale had a price drop during the four weeks ending Sept. 24, on average, up from 5.8 percent a month earlier, according to a new report from Redfin.
At the same time, the median home sale price is up 3 percent year-over-year and the typical homebuyer’s monthly payment is at a record high as mortgage rates stay stubbornly elevated, with daily average rates hitting a two-decade high on Sept. 27.
“The feeling for buyers right now is this: ‘For the interest rate I’m paying, this home better be exactly what I want, or the price better be negotiable,’” Seattle Redfin agent David Palmer said in a release.
Redfin added that total home inventory remains down 15 percent compared with this time last year. Experts added that many sellers have become open to making concessions such as paying for repairs or helping to fund a mortgage rate buydown. Additionally, new listings have posted an unseasonal uptick since the start of September, giving buyers a bit of breathing room.
“Buyers are using things like inspection negotiations and high insurance premiums to back out of deals,” Jacksonville Redfin agent Heather Kruayai said. “They’re holding a lot of the cards; today’s sellers need to concede on some details to close the deal.”