Cities that saw soaring home prices during the COVID-19 pandemic are now falling back to earth, as sellers are forced to shed their ‘unrealistic expectations’ about the prices they can ask.
A study published by real estate brokerage Redfin on Monday found that a high share of home sellers dropped their asking price in July, particularly in former pandemic boomtowns.
Boise, Idaho, which was a top destination for West Coast remote workers during the pandemic, saw 70 percent of listings slashed in July, up from just a third a year ago.
In Denver, 58 percent of home listings were reduced last month, while 56 percent of listings in Salt Lake City were dropped from the initial asking price.
‘Individual home sellers and builders were both quick to drop their prices early this summer, mostly because they had unrealistic expectations of both price and timelines,’ said Boise Redfin agent Shauna Pendleton.
‘They priced too high because their neighbor’s home sold for an exorbitant price a few months ago, and expected to receive multiple offers the first weekend because they heard stories about that happening,’ she added.