It seems like everyone moved to Phoenix or Boise over the last few years. Now those cities are among the housing markets where the highest percentage of home sellers are slashing their prices, according to Realtor.com.
It's all thanks to higher mortgage rates driving potential buyers out of the market.
"Too many buyers cannot afford housing in this market," Nancy Vanden Houten, lead U.S. economist at Oxford Economics, told the Wall Street Journal. "Some markets have become much more overheated than others, and I don't think we can rule out price declines in some of those areas."
With less people competing for homes, data shows that the share of sellers slashing their asking prices has hit an all-time high. Additionally, the portion of homes selling above list price has now fallen for the first time since June 2020.
"Price cuts are hitting hardest in markets which have been on a hot streak during the pandemic — cities which saw an influx of buyers looking for quality of life, more space, and affordability," George Ratiu, the manager of economic research at Realtor.com, said in a housing report."These are also markets which experienced a fast ramp-up in prices due to the inadequate supply of housing."
These are the cities where the most homesellers are slashing their prices.