A number of hot pandemic markets are continuing to see swift cooldowns, according to data released Monday by Redfin.
Boise, Idaho, saw the greatest share of price drops in July, with 70 percent of the market’s homes for sale dropping prices that month. Boise was followed by Denver (58 percent of homes with price drops), Salt Lake City (56.4 percent) and Tacoma, Washington (54.8 percent).
Those four metros were also the metros with the greatest portion of price drops in June, and Boise, Salt Lake City and Tacoma were listed among the 10 metros with the largest increase in price-drop rates year over year.
Nationally, more than 15 percent of homesellers dropped their price in July across the 97 metro areas analyzed by Redfin. The typical metro in July mirrored Nashville, where 32.2 percent of homes for sale dropped their prices. Half of metros saw a higher percentage of price drops, and half a lower percentage of price drops.
Tampa, Florida (52.1 percent); Sacramento, California (52 percent); Indianapolis (51.4 percent); Phoenix (50.1 percent); San Diego (49.7 percent); and Portland, Oregon (48.3 percent) filled out the list of the top 10 markets with the greatest price cuts in July.
Out of those top 10 metros, Boise, Denver, Tacoma, Sacramento, Phoenix, San Diego and Portland were among the 20 housing markets that cooled most quickly during the first half of 2022, in contrast to most of these metros seeing swift upward trajectories during the pandemic.
“Individual homesellers and builders were both quick to drop their prices early this summer, mostly because they had unrealistic expectations of both price and timelines,” Boise Redfin agent Shauna Pendleton said in Redfin’s report.
“They priced too high because their neighbor’s home sold for an exorbitant price a few months ago, and expected to receive multiple offers the first weekend because they heard stories about that happening. My advice to sellers is to price their home correctly from the start, accept that the market has slowed and understand that it may take longer than 30 days to sell.”
McAllen, Texas, saw the lowest share of price drops, with only 15.7 percent of sellers dropping their asking price. The only three metros to see a decrease in price drops year over year were located in Illinois, where price drops decreased from 28.2 percent to 22.3 percent in Lake County, from 27.3 percent to 22 percent in Elgin and 26.4 percent to 21.3 percent in Chicago.