US Housing Market ‘Underperforming’ As Third of Homes Take Price Cut [Video]

One in three homes listed for sale on the U.S. market has taken a price cut from the original listing, according to founder and president of real estate analytics firm Altos Research Mike Simonsen.

“We’re noticing in the data, some signals say home prices nationally could turn negative this spring, showing year-over-year home price declines for the first time since early 2023,” Simonsen said in a video published on his YouTube channel on Monday.

Why It Matters

The U.S. is facing an ongoing housing affordability crisis spurred by a historic shortage of homes, rising prices, high mortgage rates, and years of pent-up demand. A widespread lack of inventory has kept prices up even as the Federal Reserve’s aggressive rate hike campaign sent mortgage rates skyrocketing after March 2022 and the number of home sales dwindled.

As mortgage rates are still hovering around the 7 percent mark despite recent cuts by the Fed, aspiring homebuyers remain cautious before …