One good way of measuring where home prices are headed is to look at how many homes for sale have had to adjust their initial listing price. If there are a lot of homes in your area with price reductions, it could be a sign that the local market is softening. And, according to one national report, it likely is. That’s because, new numbers show 31.3 percent of homes for sale in October had at least one price cut of more than 1 percent. By comparison, last year at the same time just 25 percent of homes had previously dropped their price. That means an increasing number of homeowners with homes for sale are adjusting their price to attract home buyers. Whether this is due to a seasonal slow down, a reaction to recent mortgage rate increases, or the beginning of a better balanced market remains to be seen. But with fewer than half of the metro areas included in the report showing month-over-month price gains, it’s definitely good news for prospective home buyers this fall and winter. More here.
