With Mortgage Rates at a Two-Decade High, More Home Sellers Are Lowering Their Asking Price

Redfin reported on Thursday (9-28-23) that during the four-week period ending on Sunday, September 24th, roughly 6.5% of US homes for sale had a price drop during the time period. That is up from 5.8% a month earlier and a sharp monthly increase compared to the same period in years past.

At the same time, Redfin says, the median home-sale price has increased 3% year-over-year, and the typical homebuyer’s monthly payment is at a record high as mortgage rates stay unrelentingly elevated (the daily average rate hit a two-decade high on September 27th).

For home sellers, this means that pricing your home right remains a delicate balancing act, according to Redfin. Even though demand is relatively low, the seller is likely to find a buyer who will pay a fair price for the home. That is because there are so few homes on the market, with total inventory down 15% year-over-year.