"Homebuyers are landing unprecedented deals as sellers across the U.S. aggressively cut prices to lure in wary purchasers. According to recent ( ZillowNASDAQ:Z) data, 26.9% of home listings in October saw price reductions - the highest share in years - with the typical listing absorbing a cumulative $25,000 discount, a record level. Individual cuts averaged $10,000, driven by homes lingering longer on the market amid high mortgage rates and rising inventory."
"This flexibility stems from years of home value gains, allowing sellers to trim prices while still profiting. With the adjustments aligning listings to buyer budgets, the seller concessions could signal a broader market thaw just as real estate disruptor Opendoor Technologies ( NASDAQ:OPEN) was looking for a catalyst to revive its upward swing. Is this the inflection point for parabolic gains the iBuying leader needed?"
Massive seller price cuts across the U.S. are creating unprecedented buyer discounts, with 26.9% of October listings showing reductions and typical listings absorbing a $25,000 cumulative discount. Individual reductions averaged $10,000 as homes lingered amid high mortgage rates and rising inventory. Prior years of strong home-value gains have given sellers room to lower prices while retaining profits. Price adjustments are aligning listings with buyer budgets and could indicate a broader market thaw. Opendoor buys homes via an online platform using algorithms, renovates lightly, and resells while earning fees, financing interest, and ancillary service revenue, but relies on tight margins.
Read at 24/7 Wall St.
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