The rate of sellers dropping their prices is growing 2022-05-05
Gulf Coast Real Estate Update
May 5th 2022
Sellers Dropping Their Asking Price
12% of homes for sale in the U.S. had price drops in the past four weeks. That’s the highest level since early December according to a study by Redfin. The rate of sellers dropping their prices is growing faster month over month since August 2021. Sellers tight grip on the market is starting to loosen as the white-hot housing market begins to cool. Here in Pinellas those price reduction numbers track overall in our coastal markets at 12%. Some market niches track even higher. 29% of sellers of Gulf Front Condos in the Madeira and Redington Beach market that are currently for sale or pending contract have reduced their asking price.
Mortgage Rates Increase
Mortgage rates resumed their climb this week as the 30-year fixed reached its highest point since 2009. While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months.
