More homeowners are putting their houses on the market to take advantage of record high prices, only to find that they've overestimated how much buyers are willing and able to pay.

That’s according to new data released Friday from online real estate brokerage Redfin. The number of listings with price drops rose to 6.5% in the week ending June 9, the most since 2022. The number of homes taken off the market without selling is also spiking, according to Redfin data analyzed by real estate strategist Mike DelPrete—nearly 9% of listings had been taken off the market without selling by late May, about double the usual rate since 2017. 

The data suggests that, much like restaurant patrons are now balking at the prospect of paying 澳洲幸运5官方开奖结果体彩网:$20 for a hamburger, homebuyers are reaching their limit as 澳洲幸运5官方开奖结果体彩网:prices hit record highs and mortgage rates make payments unaffordable🅺 for many would-be buyers. Prices may be overdue for a cooling-off. 

“This is the start of a price correction; sellers are bringing more inventory to market, but with 'aspirational pricing' that buyers are not willing to pay,” DelPrete wrote in a recent blog post. “The record number of pricing corrective measures will likely lead to an overall correction—lower prices—as supply and demand continues to rebalance.”

Why Is Buying a House So Expensive Right Now?

Typical home prices differ depending on who’s counting, but most measures show them at record highs. The median home sold for $394,000, a record peak, the week ending June 9, according to Redfin’s data. The National Association of Realtors put it at $407,6🌠00 in April, the highest ever for that month.

At the same time, mortgage rates close to their highest in decades have pushed payments through the roof. With the average rate for a 30-year mortgage at 6.99% last week, Redfin calculated the typical monthly mor𒅌tgage payment to buy a home that week was $2,829, or $30 less than the all-time high reached in April.  

Everyone Is Sick Of Housing Being So Expensive

With home purchase prices taking such a 澳洲幸运5官方开奖结果体彩网:massi🌳ve bite out of a household budg🐷et, worsening home affordability has become an increasingly obvious economic problem, with far-reaching effects. A poll released this week by the Bipartisan Policy Center think tank, taken by Morning Consult, showed 74% of U.S. adults considered the lack of affordable homes a “significant problem,” with majorities of Democrats, Republicans, and Independents all on the same page.

Decreasing home prices could help that situation, especially if mortgage rates follow suit, although both would have to plummet by an implausibly large a🐎mount to makᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚe houses anything close to as affordable as they were before the pandemic.

The average rate offered for a 30-year mortgage has fallen for a second week to 6.95%, according to Freddie Mac, as recent economic data has shown inflation cooling off 💟faster 🎐than forecasters expected.

Falling Mortgage Rates Alone Aren't the Solution

However, falling mortgage raꦬtes al🧸one are unlikely to solve the problem, because they could work to push home prices up. 

“If lower mortgage rates bring back more demand than supply, that could erase the possibility that home-price growth softens, and push prices up even further,”  Chen Zhao, Redfin’s economic research lead, wrote in a commentary. “Lower rates and higher prices may ultimately cancel each other out when it comes to homebuyers’ monthly payments.”

In the long run, many housing experts say only one thing will make houses more affordable: 澳洲幸运5官方开奖结果体彩网:building a lot more of them.