Home sellers nationwide and in the Philadelphia region started dropping asking prices in July amid signals of a cooling housing market. Dana Anderson, Redfin, put out the welcome mat on the observation for interested readers.
Many buyers have become hesitant to pay sky-high prices that have persisted throughout most of the pandemic.
That bullish period was driven in part by rising mortgage rates and the prospect of falling home values. But there are regional signals that the boon might be tailing off.
In addition, residential real estate inventory is up, bringing more choices and less competition to buyers.
“Individual home sellers and builders were both quick to drop their prices early this summer, mostly because they had unrealistic expectations of both price and timelines,” said Redfin agent Shauna Pendleton.
Home buyers in every major U.S. metro have dropped asking prices by more than 15 percent.
In the Philadelphia metro, the share of homes for sale with a price drop in July was 36.1 percent. That put the City of Brotherly Love in No. 38 among all metros nationwide.
The drop is steeper than in July 2021, when the share of homes for sale with a price drop in Philadelphia was 28.8 percent.
Read more about the data indicating a cooling housing market at Redfin.