If you are a home seller, it is both the best and worst of times.
Properties in desirable areas that are “near-turnkey” still sell fast, often above listing price, according to new research from Realtor.com.
But everyone else is learning a hard lesson: Their home probably is not worth as much as they thought it was just a year ago.
For some home sellers, that tough reality is setting in. Many who priced their homes too high for the current market now are cutting their asking price in hopes of selling.
As Hannah Jones, an economic research analyst at Realtor.com, says in a summary of her firm’s research:
“A price reduction means the sellers are coming into the market optimistic, but the buyers aren’t meeting them there. Eventually, they might have to lower the price in order to get the interest that will lead to a sale.”
Realtor.com says that among the nation’s 150 largest U.S. metro areas, the following had the highest percentage of home listings with a price reduction in February.
10. Colorado Springs, Colorado
Home listings in this metro area with a price reduction in February: 18.7%
Earlier this month, we reported that Colorado Springs was among the “10 Housing Markets Where Bidding Wars Are Disappearing.” In January alone, the supply of homes for sale nearly tripled compared with a year earlier.
9. Flint, Michigan
Home listings in this metro area with a price reduction in February: 18.8%
Not only are sellers slashing their prices in Flint, but as we reported last year, the city’s housing prices still have not recovered from the last housing bust.
8. Nashville, Tennessee
Home listings in this metro area with a price reduction in February: 19%
Although sellers are cutting prices today, history indicates Nashville likely will be fine over the long haul. The city is among the “The 15 Most Stable U.S. Housing Markets.”
7. Columbia, South Carolina
Home listings in this metro area with a price reduction in February: 19.8%
Falling prices make Columbia a better bargain than it already was. Last November, we reported that the capital of South Carolina was among the “10 U.S. Cities Where Homes Are Cheapest Right Now.”
6. Ogden, Utah
Home listings in this metro area with a price reduction in February: 21.5%
Last August, we reported that Ogden was among the “20 Housing Markets Overvalued by More Than 50%.”
By November, prices already were falling, and that trend appears to be continuing.
5. Las Vegas
Home listings in this metro area with a price reduction in February: 21.9%
Sellers in Las Vegas may be reducing their asking prices, but that doesn’t mean homes here are dirt cheap.
Las Vegas is among the “15 Cities Where You Need to Work the Most Hours to Afford a Home.”
4. Huntsville, Alabama
Home listings in this metro area with a price reduction in February: 22%
If you are looking for affordability, give Huntsville a second look. Not only are home sellers turning more accommodating, but last year, the city appeared in the rundown of “10 of the Most Undervalued Housing Markets in America.”
3. Port St. Lucie, Florida
Home listings in this metro area with a price reduction in February: 23%
Port St. Lucie is one of three Florida markets that recorded home price jumps of between 200% and 270% in the decade ending in 2021. But as in the other cities on this list, price gains here have paused for now.
2. Phoenix
Home listings in this metro area with a price reduction in February: 24.6%
How cold has the market gotten in Phoenix? As we recently reported, it is among the “4 Places Seeing Their Worst Home Price Declines in Over a Decade.”
1. Austin, Texas
Home listings in this metro area with a price reduction in February: 25.4%
It wasn’t so long ago that the Austin housing market was red-hot. Now, it is one of “4 Places Where Home Prices Could Plummet Up to 19%.”