Sellers Cut Prices in 38 of 50 Largest U.S. Cities
Rising mortgage rates are forcing home sellers to accept below-asking offers in most major U.S. markets, new data shows.
Home sellers across 38 of the 50 largest U.S. cities are now accepting offers below their listed asking prices, a stark sign that elevated mortgage rates are steadily eroding buyer purchasing power and shifting negotiating leverage away from sellers, according to new data reported by CNBC.
The trend marks a meaningful reversal from the frenzied pandemic-era housing market, when bidding wars routinely pushed sale prices well above asking. Today's buyers, burdened by borrowing costs that remain near multi-decade highs, are pushing back — and in most major metros, they are winning price concessions that were nearly unthinkable just two years ago.
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The dynamic does not mean housing has become broadly affordable. Even at slightly discounted prices, high mortgage rates translate into monthly payments that remain a serious barrier for first-time and middle-income buyers in many of these cities. The question facing the market is whether price reductions will deepen enough to offset the cost of financing, or whether affordability will remain structurally strained until rates fall.
For prospective buyers with the financial footing to act, the shift does represent a window of relative negotiating strength that has been absent for years. Sellers who priced optimistically during a tighter market are increasingly being forced to recalibrate expectations as homes sit on the market longer and offer counts decline.
Continue reading at CNBC.
