After years of watching prices zoom ever higher, those shopping for homes finally are getting a bit of good news: Sellers in some cities are beginning to sweat.
In fact, in a relative handful of markets, at least 20% of home sellers have lowered their asking price recently, according to Redfin.
Price drops “are becoming increasingly common,” particularly in many places that had been historically affordable before the recent runup in prices, says the real estate brokerage.
Following are the markets where the largest percentage of listings now feature asking prices that were reduced in April 2022.
10. Portland, Oregon (tie)
Homes for sale in this market with a price drop: 28%
Rising house prices in Portland have made finding an affordable home difficult. Renting is no picnic, either, as this is among the “15 Cities With the Highest Rents.”
So, those shopping for new digs in Portland are likely relieved to see so many sellers cutting their asking price.
10. Provo, Utah (tie)
Homes for sale in this market with a price drop: 28%
In January, the Deseret News suggested that folks who recently bought homes in Provo and other Utah towns “might have paid too much.”
Are recent price cuts in Provo a sign that the newspaper was right? Time will tell.
9. Indianapolis
Homes for sale in this market with a price drop: 28.2%
Last year, Rick Palacios Jr., director of research for John Burns Real Estate Consulting, told the IndyStar that Indianapolis housing prices had reached “peak insanity.” He predicted a cooling trend in 2022.
Recent price drops in Indiana’s capital city indicate his forecast may have been spot on.
8. Odgen, Utah
Homes for sale in this market with a price drop: 28.4%
Homebuyers in Ogden have been paying an average of 64.73% more than they should for homes, according to researchers at Florida Atlantic University and Florida International University.
With more than one-quarter of sellers dropping their asking prices, it appears that what went up in Utah must now come down.
6. North Port, Florida (tie)
Homes for sale in this market with a price drop: 29.6%
Home prices and rents are skyrocketing throughout Florida. Ken. H. Johnson, an economist at the Florida Atlantic University College of Business, told Boca Raton magazine that today’s soaring living costs do not bode well for the future:
“We want an immediate solution to this problem, but there is none. There is going to be a reckoning from this latest housing crisis.”
6. Philadelphia (tie)
Homes for sale in this market with a price drop: 29.6%
Competition for housing in Philadelphia is so fierce that bidding wars are breaking out — among renters.
One Philly-area resident applied for more than 30 rental homes and didn’t land one of them, according to a Philadelphia Inquirer report.
Perhaps a slide in Philadelphia sellers’ asking prices signals relief is on the way for homebuyers and renters alike.
5. Sacramento, California
Homes for sale in this market with a price drop: 29.9%
Sacramento’s housing market has remained hot, with one local appraiser and analyst describing it as “completely bananas,” local NBC affiliate KCRA reports. But it appears that a cooling trend is starting to settle in for prices in California’s capital city.
4. Baton Rouge, Louisiana
Homes for sale in this market with a price drop: 31%
As with many places across the U.S., housing prices have gone up in Baton Rouge as sales have gone down. A lack of inventory for sale has driven prices steadily higher.
However, that trend may be ebbing, with price drops on nearly one-third of listings in the Louisiana state capital during April.
3. New Orleans
Homes for sale in this market with a price drop: 31.6%
Life in the Big Easy has been anything but easy if you are a homebuyer trying to find something affordable. But price drops are becoming more frequent here, too.
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2. Cape Coral, Florida
Homes for sale in this market with a price drop: 32.5%
The Fort Myers/Cape Coral area is among the most overvalued markets in the country, with prices 56.26% higher than they should be, according to Florida Atlantic University and Florida International University researchers.
Here, too, nearly one-third of sellers finally are reducing their asking prices, though.
1. Boise, Idaho
Homes for sale in this market with a price drop: 40.8%
No state has been more popular recently than Idaho. As we have reported, the Gem State had far and away the largest population growth among U.S. states during 2021.
All those incoming residents pushed prices sky-high in Boise, the state’s capital and biggest city. But perhaps it was a case of too much, too soon — just over 40% of sellers are now lowering their asking price in Boise.
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