House prices are falling in some of the most popular real estate markets in the United States. According to new data from the real estate company Redfin, more than 20% of home sellers have lowered the price in seven of the 10 most popular destinations last month, which are: Cape Coral, Florida; Sacramento, California; North Port, Florida; Tampa, Fla.; Atlanta Georgia; San Antonio, Texas, and Phoenix, Arizona.
“When mortgage rates were 3% or less, both local and out-of-town homebuyers were more willing and able of tolerating high prices, but at 5%, many are now out of price,” said Redfin’s chief economist, Daryl Fairweather, according to Fox News.
“The price of a house is determined by the balance of supply and demand, and when demand falls and supply rises like now, rapid price increases quickly evaporate,” added Fairweather.
Areas that had a large increase in migration and strong increases in home prices in the last two years are now are seeing a sharp drop in demand, forcing sellers to lower their prices more frequently, Fairweather said.
In April, the 33% of home sellers in Boise, Idaho, reduced their price, which is 10% more than the sellers who did the same a year ago.
Cape Coral, Florida was not far behind, as 33% of sellers lowered the price of their homes, according to Redfin. In New Orleans and Baton Rouge, Louisiana, 32% and 31% of home sellers, respectively , reduced the price of their home.
The data also show that the 30% of home sellers in Sacramento decided to lower their price.
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