Prashant Gopal at Bloomberg writes that in some place the hot housing market has seen “a sudden reversal, buyers are now the ones with power.” (Bloomberg)
WHAT HAS HAPPENED? Dominic Zimmer, a local Realtor in Boise, Idaho, says that “asking prices for houses are being slashed. Bidders no longer have to waive inspections to win over sellers juggling multiple offers. Demand has slowed so much it’s like a light switch suddenly turned off,”
WHERE? The slowdown has been particularly pronounced in areas away from major urban hubs where buyers were seeking affordability and picturesque havens during the pandemic.
- CBH Homes, the most prolific builder in Idaho, has 99 Canyon County homes with active listings on Realtor.com — and 52 have price reductions.
- In Idaho’s Canyon County, about eight out of 10 listings have had price cuts, the biggest share in the U.S.
Daryl Fairweather, chief economist for Redfin, said many of these price cuts are happening in places that got too hot too fast. “The markets where we’re seeing the most price cuts were flying a little too close to the sun earlier this year…Sellers got eager in their asking prices. It was not sustainable and benefited from pandemic trends that still persist, but not as extremely.”