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Though real estate prices remain higher than ever, recent data published by the brokerage company Redfin shows a rapid decline in the average listing price. An analysis of sale listings between mid May and June 16 showed that 22.4% of sellers reduced their asking price. According to Redfin, this is “a record high as far back as the data goes, through the beginning of 2015.”

During the same time period, a number of other noteworthy trends were observed:

  • Mortgage rates rose to 5.78%, the highest level since 2008.
  • Monthly mortgage payments are unprecedently high–increasing from an average of $1,692 to $2,514 in just this past year.
  • Redfin’s “Homebuyer Demand Index” recorded a 14% (year-over-year) decline.
  • Mortgage applications have dropped 16% since this time last year.
  • Homes are spending a little more time on the market, with the median time between listing and sale being 16 day.

Economist Taylor Marr noted,

The housing market isnโ€™t crashing, but it is experiencing a hangover as it comes down from an unsustainable high. Housing demand has already cooled significantly to the point that the industry has begun facing layoffs. This weekโ€™s rate hikes will further stretch homebuyersโ€™ budgets to the point that many more may be priced out. While a lot of home sellers are already dropping their prices, more homeowners will likely decide to stay put now that the mortgage rate on a new home is significantly higher than their current one.