More Than 40% of Home Sellers Are Dropping Their Prices in Salt Lake City, Boise, Sacramento and Other Pandemic Hot Spots - Seite 2

The soaring prices were largely due to out-of-town homebuyers moving in during the pandemic, competing with locals for a limited supply of homes. Migration into both Boise and the Salt Lake City metro area—which includes Provo and Ogden—nearly tripled throughout 2020. The trend has started to reverse in both places, with Salt Lake City seeing a net outflow (more Redfin.com users looking to leave than move in) for the first time on record in the first quarter.

“Many buyers are backing out of the market—and even backing out of deals—and some sellers are responding by dropping their price,” said Boise Redfin agent Shauna Pendleton. “Some buyers are no longer able to afford the home they want because mortgage rates have increased so much. There aren’t nearly as many people moving into the Boise area now that prices have gone through the roof. Ironically, a lot of Boise newcomers are now leaving because the quiet, slow-paced lifestyle that drew them here doesn’t exist the way it did before so many people moved in. Those people are cashing in on their equity to move to more affordable areas, mainly in the Midwest, where they can get more for their money—in some cases, they can even pay all cash.”

The share of homes with a price drop increased from a year earlier in 102 of the 108 metros in this analysis. It declined in six metros, three of them in Illinois: McAllen, TX, Elgin, IL, Chicago, Fresno, CA, Lake County, IL and Springfield, MA.

To read the full report, including a table of price-drop data for the 100 most populous U.S. metro areas, please visit: https://www.redfin.com/news/price-drops-increase-may-2022.

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