After two months on the market and three showings, 80-year-old Doug McCormick has yet to find a buyer for his 4-bedroom, 4.5-bathroom house in Evergreen, Colorado. He initially listed it for 1.3 million USD, then dropped the price to 1.28 million USD, but still has no takers. Now, he's considering renting it out. "It's something that's always in the back of my mind," McCormick said, "I keep telling myself, all I need is one buyer."

In suburban South Miami, Tammy Tullis listed her 4-bedroom home in June for 2.8 million USD. She didn't see any interest until she lowered the price by 100,000 USD. However, prospective buyers wanted her to reduce it further, by 400,000 to 500,000 USD. Last month, Tullis decided to delist her property. "I want to sell it," she said, "but I am in no rush."

McCormick and Tullis's situations are not unusual. As demand slows, some sellers have made repeated price reductions, yet their homes remain unsold. "We're seeing significant price cuts, but sometimes it's still not enough. Homes are still sitting," commented Annie Foushee, a Redfin agent in Denver.

A single-family home on a hillside in suburban San Marcos, California, USA, 25/3/2024. Photo: Reuters

A single-family home on a hillside in suburban San Marcos, California, USA, 25/3/2024. Photo: Reuters

Median listing prices in Austin and Miami fell by 4.9% and 4.7% respectively in July compared to the same period last year. Other metropolitan areas experienced significant listing price drops, including Chicago (4.4%), Los Angeles (4.2%), and Denver (4%).

Nationally, the median listing price increased slightly in July compared to the same period in 2024, reaching 439,450 USD, according to Realtor. However, the real estate brokerage firm noted that the highest price a median-income American household could afford was 298,000 USD.

In the first seven months of the year, existing home sales declined by about 1.3% compared to the same period last year, reaching a near 30-year low. An increasing number of homes are being listed but remain unsold as buyers are either unwilling or unable to complete transactions. The inventory of homes for sale rose in July for the 21st consecutive month, nearly 25% higher than the same time last year.

Reduced affordability, coupled with uncertainty about economic prospects, employment, and mortgage rates, is putting pressure on sellers to make concessions. In some markets, primarily in the South and West, homeowners looking to attract buyers are having to offer deeper discounts.

Lindsay Olesberg listed her 4-bedroom house in suburban Albuquerque, New Mexico, for 835,000 USD in 6/2024 after her husband secured a new job in Texas. It took them over a year and several price reductions to finally sell the property, ultimately accepting 40,000 USD less than their initial asking price.

Meanwhile, buying a new home in Austin, Texas, proved to be much easier. The Olesbergs had little difficulty finding a suitable and affordable home in Austin, as inventory in this market had increased by almost 60% in July compared to pre-pandemic levels.

As a result, they purchased a 5-bedroom, three-bathroom house for 735,000 USD, 30,000 USD below the original listing price. The seller also agreed to cover 1,000 USD in fees. "We sold our house in New Mexico for less than we wanted," Olesberg said, "but the Austin market is a buyer's market right now, so prices are down."

Anh Ky (according to AP)