In October home sale prices climbed 4.5%, however the percentage of listings that had a price drop of more than 1% reached an 8-year high, according to new data from Redfin.
This October, home sale prices reached a median of $297,200, increasing 2.4% from the previous month, Redfin explained.
Redfin also reported that 32 of the 71 largest metro areas saw home price increase from September, attributing this growth to home sales shifting to more expensive areas, rather than individual homes increasing in value.
“An increase in interest rates effectively makes home-buying more expensive because buyers have to pay higher monthly mortgage payments even if the sticker price hasn’t changed,” Redfin Chief Economist Daryl Fairweather said. “Some homebuyers are adjusting their price range down, and others are backing out of home-buying entirely–deciding that renting is a better deal.”
“Sellers are now realizing buyer demand isn’t what it used to be and are dropping their prices. 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,” Fairweather continued.
According to Redfin’s analysis, 31.3% of listings had at least one…