Data from a recent Redfin report shows record levels of price cuts in the U.S. real estate market as the Federal Reserve continues to hike its policy interest rate to stymie persistent red-hot inflation.
Data shows that 7.9% of home sales listed for sale had prices cut, making it a record high, reports say.
The nearly 8% of homes with prices cut is compared to around 4% at the same time last year.
Redfin's company data dates back to 2015, with the company averaging out the data from the listings with prices marked down and correcting any outlying issues.
Taylor Marr, a chief economist at Redfin, said the data shows that a quarter of homes are dropping prices. Marr said, “We have never been this high,” Market Watch reported.
Marr said he expected the price drops to be worse but says sellers are slow to react to decreased demand.
Markets like Oakland, and San Francisco have seen prices drop by 2% and 3% and New Orleans has seen a 2% price drop in some cases.
“Even in Atlanta, or Orlando, we’re seeing buyers backing out,” Marr said.
“There have been opportunities when rates really came down and gave buyers the moment to jump back in and get some good deals on homes that did drop their prices,” Marr noted.