Study: As housing market cools, some sellers are asking for less
Contributed | pixabay.com/photos/house-home-sold-brick-for-sale-435618/
A house for sale.
More than 9% of home sellers in the Hartford metro region reduced their asking price in July, according to new data released by Realtor.com.
The percentage was at the low end of the range for the top 50 largest metro regions in the country. In the Las Vegas, Phoenix and Austin markets, more than 40% of sellers reduced their asking price, according to the data.
According to a Realtor.com survey released Tuesday, 92% of people who sold their home within the last year accepted at least some buyer-friendly terms, and 41% accepted contingencies in the contract.
Negotiations between buyers and sellers resulted in compromises relating to financing, timing, repairs and other types of flexibility. The number of buyers asking for repairs based on inspection results more than doubled in recent months and the number of sellers refusing to make repairs dropped to zero, according to the survey.
"Our survey shows that the overheated housing market of the past two years, which predominantly favored sellers, is beginning to regain a sense of normalcy, which is welcome news for home buyers," said George Ratiu, manager of economic research at Realtor.com. "The combination of higher mortgage rates and prices have noticeably cooled demand over the first half of the year.”
Homes that sold at- or above-asking price peaked at 82% in February and March of this year.
Recently, 92% of sellers agreed to buyer-friendly terms, including:
- 41% - Accepted contingencies in the contract (appraisal, home inspection, home sale, financing, etc.)
- 32% - Dropped the price because the home didn't meet appraisal
- 32% - Paid for some or all of the buyer's closing costs
- 30% - Had to be flexible on the ideal timeline for closing
- 29% - Paid for repairs to the home after the appraisal
- 28% - Were not able to rent the home back after close despite asking to
The sampling margin of error was plus or minus 1.8 percentage points.
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