Home Prices Dip , as Homebuyers Show , Dwindling Interest.
'Newsweek' reports that home sellers
have started to cut prices in an effort
to attract buyers amid lagging demand.
According to a recent analysis by Zillow,
price reductions increased by more than 22%,
reaching the highest rate in the last six years.
Zillow suggests that the price cuts
could indicate dwindling demand.
Price cuts can be a sign
of weakening demand
that foretells softer
price growth ahead, Skylar Olsen, chief economist of Zillow, via 'Newsweek'.
Potential homebuyers may start to see
a market with more options, with the
supply of homes jumping 6.4% in April. .
On an annual basis, the supply of
properties on the market skyrocketed 18%.
According to Skylar Olsen, the chief economist
of Zillow, this represents the "second-largest
annual increase since at least 2019.".
'Newsweek' reports that the housing market
has struggled with affordability issues
as mortgage rates hover above 7%. .
Higher-than-usual costs for borrowing have
depressed activity in the market, with many
buyers reluctant to face high monthly payments.
At the same time, the average price of a home in
April was over $359,000, representing a 4.4%
increase compared to the same time in 2023