Home sellers lower prices as US housing market stagnates

PBS NewsHour reported that the US housing market has shifted from a seller's market to a buyer's market, with many home sellers lowering prices and offering concessions to attract buyers.

The Associated Press explained that this change comes after a period earlier in the decade when sellers often received offers above asking price due to low mortgage rates fueling high demand and soaring home prices.

Now, surging mortgage rates, years of rising prices, and high inflation have stalled the market, putting homeownership out of reach for many buyers and causing others to delay purchases in hopes of better conditions.

Real estate agents say sellers who cannot withdraw their listings are under increased pressure to reduce prices and pay some buyer costs, while those who can often take their homes off the market to avoid prolonged sales periods.

Mark Fleming, chief economist at First American Financial, noted that sellers may need to make price reductions or concessions and expect homes to stay on the market longer, reflecting a shift back to a buyer's market.

This market dynamic is causing many sellers to delay major life decisions tied to selling their homes, such as relocating for jobs or accommodating family changes.