Bbg: Home Sellers Slashing Prices in Boomtowns

Bloomberg headline: Home Sellers Are Slashing Prices in Pandemic Boomtowns

Sub-headline: Redfin found that 70% of homes for sale in Boise, Idaho, had their price cut in July, the highest share of 97 metros.

Now, the Federal’s Reserve’s efforts to tamp down inflation have sent mortgage rates above 5% and pulled the brakes on the housing market. Nationwide, home sales dropped 19% year-over-year in July to the lowest level since the early days of the pandemic, and the share of homes for sale with price drops reached 21% in July, the highest share in Redfin data going back to 2012.

Denver, which attracted hordes of remote-friendly Silicon Valley tech workers during the pandemic, saw 58% of homes for sale slash prices in July compared with 36% the year prior. In Salt Lake City, 56% of listings cut their asking prices followed by Tacoma, Washington, at 55% and Tampa at 52%.