The Housing Market Cracks: Sellers Slash Prices, Homebuilders Struggle, and Buyers Back Out

Sellers in the U.S. housing market are facing challenges as mortgage rates and home prices continue to rise. A record number of sellers dropped their listing prices in October, with nearly 7% of for-sale homes posting price drops, the highest portion since 2012. High mortgage rates have forced sellers to cut prices to counteract the added expense for buyers. The housing market is experiencing a deep freeze, with existing-home sales activity dropping by 15% year-over-year in September. Economists predict that home prices will continue to drop through 2023, despite low inventory, as affordability remains a major concern.