US home sellers cutting prices hit highest level since 2019

THE number of home sellers lowering prices has reached the highest level since October 2019, the latest sign that the housing market is slowing from its once-frenzied pandemic pace.

Nearly one in 5 sellers dropped prices during the 4 week period ended May 22, Redfin said in a report Thursday (May 26). Other measures of how hot the market is, including a house's time on market and the percentage of homes selling above listing price, have also plateaued.

Consumers are contending with some of the highest mortgage rates in years, despite the dip in those figures in the past 2 weeks. Higher rates, coupled with economic uncertainty, are raising questions about whether the US housing boom has met its limit with signs emerging that the once-intense pace of the market could be decelerating.

"The picture of a softening housing market is becoming more clear, especially to home sellers who are increasingly turning to price drops as buyers become more cost-conscious under higher mortgage rates," Daryl Fairweather, Redfin's chief economist, said in a statement. BLOOMBERG