Home sellers nationwide — and in the Phila. collar counties — started dropping asking prices in July, perhaps signaling the pop of a market bubble that has inflated wildly for more than a year. Dana Anderson, of Redfin, unlocked what might be notable changes in the market.
Buyers have become increasingly hesitant to pay sky-high prices that persisted throughout most of the pandemic. Their coolness may be due to concurrent trends that include:
- Rising mortgage rates
- The specter of falling home values
- Upticks in inventory, which gives buyers more options to choose from
“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 their 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 decline is steeper than in July 2021, when the share of homes for sale with price reductions in Phila. was 28.8 percent.
Read more about the latest shifts in the regional housing market at Redfin.