NEWS: Finally Home Sellers Started to Drop Asking Prices in 2022

Could this be real? After such a long and high increase in the housing market, the numbers for the Asking Prices are starting to get lower. 

As Redfin's Chief Economist, Daryl Fairweather mentioned, we are starting to see sings of the market "cooling down".

"Price drops are still rare, but the fact that they are becoming more frequent is one clear sign that the housing market is cooling," said Redfin Chief Economist Daryl Fairweather. "It goes to show that there's a limit to sellers' power. There is still way more demand than supply, and buyers are still sweating, but sellers can no longer overprice their home and still expect buyers to clamor at their door. That's because higher mortgage rates are eating into homebuyers' budgets. As the cooldown continues to set in, it is important that sellers price their home carefully. Homes that sit on the market for several days have a scarlet letter that makes them more difficult to sell. Buyers should be wary of bidding significantly over asking on newly listed homes, and take a closer look at the homes that have been on the market for more than a week."

As some Agents like Dee Heyerdahl in the Seattle area, comment about this cooling down signs over the past couple of weeks. Buyers seem to be leaning towards just selling for a tens of thousands over the market rather than hundreds of thousands, still making a profit. 

"The slowdown over the last two weeks has felt significant," said Seattle-area Redfin real estate agent Dee Heyerdahl. "Usually April is when the spring homebuying and selling market begins to heat up, but this year things are cooling down a bit instead. Listings that a month ago would have had a dozen interested buyers touring in a single day now see less action than that in a whole week. Potential sellers are deciding to hold off in the midst of the market uncertainty. Homebuyers are telling us that they're disengaging from the market because they've been priced out of the market by both rapidly rising home prices and rapidly rising mortgage rates. That said, the market still feels very hot, and as things slow down it just means homes might only sell for a few thousand over asking price instead of hundreds of thousands and multiple offers will mean three or four instead of 30 or 40."

Overall, the real estate market is still on a very high stage but indicators such as sellers preferring to have a few offers rather than dozens can open opportunities for new home buyers. Some more indicators are fully explained on a recent article the World Property Journal.