More than one-third of all homes for sale in the U.S. had a price cut of more than 1% in October, the highest share of discounted listings in at least eight years, according to a monthly housing report on Friday from website Redfin.
The proportion of homes with discounts has increased more than 6% from a year ago, when only a quarter of all listings had price reductions, according to the website, which has been tracking the metric in 71 of the country’s largest metro areas since 2010.
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Price cuts are yet another symptom of a cooling housing market in the U.S., where rising interest rates and rapid price appreciation has home buyers recalculating their budgets.
October home sales sunk 5.7% compared to a year ago, as buyers struggle to find homes on the market in their price range.
"Sellers are now realizing buyer demand isn't what it used to be and are dropping their prices," said Redfin chief economist Daryl Fairweather in a statement. "When buyers and sellers are on the same page, the market moves quickly, but since sellers were slow to react, we've seen a slowdown in the housing market."
Expensive areas of the country where activity was recently surging have seen the greatest drop in sales.
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Seattle recorded one of the most dramatic slowdowns, with a nearly 20% decline in sales in October compared to a year ago. Sales also fell 16% in San Diego during that time.
Second-home market Honolulu has seen sales decline 22.9%.
Despite declining activity, median sales price still managed to rise in October, increasing 4.5% compared to a year ago, to $297,200.