The market had been a seller’s market for quite some time, but now the scales are tipping more towards buyers, leading to what is now a flat market. As of June of 2018, home prices were still on the rise, albeit more slowly. But sellers noticed something — they weren’t selling without a price cut. 14% of all June listings took a price cut.
After the crash of 2008, construction has been slow and tilted towards high-end homes and single-family residences. Millennials who are now eagerly looking for their first homes are coming into an environment of lack of housing and especially affordable housing. Sellers are having to respond to prospective buyers’ high demand, but inability to survive in the current market. Currently, that means price cuts. Eventually sellers, and their agents, are really going to catch on and start listing lower. That’s going to bring the market closer to equilibrium.