Those days are fast fading. Today’s homebuyers simply don’t have as much cash to spend; they’re grappling with rising rents, punishing inflation, and increasing mortgage interest rates. Those higher rates can tack on hundreds of dollars each month to the typical mortgage payment, pricing many buyers out of the market entirely, and forcing others to drastically reduce their homebuying budgets.
When a near-turnkey home in a desirable area is priced right, it’s still selling fast—often with multiple offers stretching well above the list price. But sellers who overshot the market are quickly learning they can no longer fetch the sky-high prices their neighbors nabbed in early 2022. So, many are now reducing asking prices to attract buyers.
Realtor.com® found the real estate markets where the highest percentage of sellers are cutting their initial list prices—and the markets that are seeing the lowest number of price reductions.
In places where prices are being trimmed, buyers have more power to negotiate the final price and repairs and to ask for other concessions—maybe even for the seller to chip in on closing costs. However, in areas where sellers are sticking to the list, buyers could find themselves in bidding wars and offering above the asking price.
