TAMPA, Fla. — With a rise in interest rates and empty homes on the market, home sellers across the country are feeling the pressure to reduce prices to attract buyers.
Realtor.com said the number of homes rose to 34.2% this past May and spent an average of 44 days on market.
“With greater inventory and a slower time on market, it is possible that price growth might continue to decelerate further until the market sees a meaningful decline in mortgage rates,” stated Sabrina Speianu, Realtor.com economic data manager.
According to Realtor.com, the percent of homes that have dropped their prices is up from 12.7% in May 2023 to 16.6% in May 2024.
The report also found that 46 of the top 50 metros in the United States saw share of price reductions rise compared to the previous year.
Region wise, the South saw a higher percentage in price reductions year by year. It saw an increase of 4.9 percentage points while the West saw an increase of 3.3 percentage points, the Midwest saw a rise of 2.2 points and the Northeast saw a 1.2-point increase.
However, while the market has started to put pressure on home sellers, home buyers may be able to get relief in a real estate market that saw prices soar post-pandemic.
Realtor.com listed three cities that saw considerable drops in prices: Tampa, Florida; Jacksonville, Florida; and Charlotte, North Carolina.
The report stated that 28.6% of homes in Tampa saw price reductions, which is an increase of 10.9 percentage points compared to 2023.
In one example, Realtor.com showed a four-bedroom, solar-powered house that dropped its price by $55,000.
Jacksonville fell right behind with 27.3% of homes reducing prices, a 10.2 percentage point increase, and Charlotte came in third with 19.4% of homes lowering their prices, an 8.3 percentage point increase.
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