Home Sellers Adjust to Market Shifts Amid Buyer Retreat

As the housing market experiences a slowdown, many home sellers are being forced to reduce their listing prices to attract buyers, according to a recent report from Zillow. In June, nearly 25% of sellers cut their prices, a slight increase from the previous month. The total number of homes available for sale rose by 4% from May to June, marking a 23% increase compared to last year’s low levels. This shift indicates a return to pre-pandemic market dynamics, where buyers have more negotiating power. Zillow's Chief Economist, Skylar Olsen, noted that homes that are not competitively priced or effectively marketed are remaining on the market longer. For potential homeowners, it is advisable to shop around for the best mortgage rates, as this could significantly impact affordability. The report highlights that while the typical home value rose by 0.6% in June, this growth is the slowest recorded for that month since 2011, suggesting a cooling trend in home price appreciation. The increase in inventory is contributing to this slowdown, potentially providing struggling buyers with an opportunity to catch up. In a related note, Federal Reserve Chair Jerome Powell indicated that the central bank may not wait for inflation to reach its 2% target before considering interest rate cuts, reflecting ongoing economic adjustments. For those looking to secure a mortgage, platforms like Credible can facilitate comparisons among various lenders to find the best rates available.