Valley housing market cooling off

Sellers are having to lower their listed prices because demand has died down.

Dale Yurong Image
Thursday, June 30, 2022
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The real estate frenzy which excited sellers and frustrated buyers the past two years has settled down.

FRESNO, Calif. (KFSN) -- The housing boom born out of the pandemic is now going through a cooling-off period.

The real estate frenzy that excited sellers and frustrated buyers over the past two years has settled down.

Linda Leonard of Guarantee Real Estate says homes are starting to stay on the market longer.

As a result, sellers are having to lower their listed prices because demand has died down.

"Since mid-June, 25% of the homes on the market have had a price reduction. Now imagine two months ago, almost every home - as long as it was in good condition - was going at asking or over," says Leonard.

Those bidding wars are long gone.

Leonard has noticed the Valley's housing inventory has increased.

Higher interest rates make it more challenging for many buyers to qualify but now they are also in a better position to negotiate a sale.

"Some buyers that I've been working with these last few weeks have actually been able to get homes under the list price, and that was unheard of within the last two years.," says Leonard.

Leonard says the leveling off of home prices makes for a healthier housing market.