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.
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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%.
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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
