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Even with demand buoyed by a sparse housing inventory, growing financial challenges for buyers are forcing home sellers to cut prices to close deals, a new Redfin<\/strong><\/a> research report<\/a> found. <\/p>\n According to the brokerage, 6.5% of U.S. homes for sale posted a price cut during the four weeks ending September 24, up from 5.8% the month prior. <\/p>\n In some markets, more than 50% of active listings have experienced a price cut, according to Altos Research<\/strong><\/a>. The five metro areas\u00a0with the highest percentage of listings with price cuts for\u00a0the week ending Sept. 22 were Wenatchee-East Wenatchee, Washington (53%); Idaho Falls, Idaho (52%); Carson City, Nevada (52%); Austin<\/a>-Round Rock-San Marcos, Texas (52%); and Waco, Texas (51%).<\/p>\n Due to a lack of supply, prices overall have been on the upswing. The median U.S. home sale price<\/a> rose 3% year over year, reaching $420,846 in August, the largest annual increase since October 2022. And because mortgage rates have been above 7% for about two months consecutively, the cost of financing is extreme. The average principal and interest payment among borrowers purchasing a home using a 30-year fixed-rate<\/a> loan hit its highest point ever in July at $2,306<\/a>, according to Black Knight<\/strong>\u2019s<\/a> mortgage monitor report. With taxes and insurance, most buyers today are approaching $3,000 or more <\/p>\n \u201cPricing is the absolute number one, most important factor when somebody sells their home,\u201d Robert Andert, a real estate agent on The Minnesota Real Estate Team<\/strong>, told HousingWire in an interview in July. \u201dSo even in the market that we’re in now, with a high demand, if a home is overpriced, it’s not necessarily going to move right away.\u201d\u00a0<\/p>\n On the one hand, there are very few homes on the market, with total inventory down 15% year over year, according to Redfin. But on the other hand, homebuyers are also growing more price-sensitive as monthly payments eclipse an all time high.\u00a0<\/p>\n \u201cBuyers are picky and they don\u2019t want to pay a dollar more than they need to,\u201d the report said.<\/p>\n Hence, homebuyers are encouraged to negotiate with sellers, who seem willing to make concessions.\u00a0\u00a0However, available inventory of homes for sale is on the rise in late September, a very unusual trend for the season, Altos Research’s Mike Simonsen noted in a HousingWire<\/a> article this week. It is giving buyers a little more leeway and allow them to chose from a larger selection of homes.<\/p>\nPricing accurately is paramount<\/h2>\n
Available inventory of home for sale is ticking up<\/h2>\n