Boise housing becomes a buyer’s market

Nearly 70% of home sellers in Boise, Idaho cut the asking price on their house in July, Redfin reports; a remarkable turn for the once-hot real estate market.

• Nationwide, the number was 32% — up from 27% in July 2019.

Why it matters: This is just the latest indication that the pandemic housing boom is going bust, as higher mortgage rates chill demand for homes.

• The high percentage of cuts show that sellers expectations are too high: They're still living in the world of wild bidding wars.
• "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,” said Boise Redfin agent Shauna Pendleton in the company's press release.

Keep in mind: While the percentage of sellers cutting prices is very high in Boise, the actual price cuts are quite modest — less than 5% off the original list price.

• The median listing price for a home in Boise fell $30,000 to $613,000 in July from the prior month, according to data from Zillow.
• But prices are still, as Crazy Eddie was famous for yelling, “Insane:” In July 2019, the median list price for a home there was $381,000.
• Nationwide, the median home sales price fell $10,000 in July from the month before, the National Association of Realtors reported last Friday. But it's still near a record high.

What's next: Home prices are likely to come down further.