Home sellers are lowering their prices and helping buyers to make a deal in a stagnant market

In the current U.S. housing market, homeowners are facing significant challenges as prices are being lowered and buyers are being asked to contribute towards their closing costs. The stagnant market is leaving many sellers stuck and unable to sell their homes for the desired price.

Mortgage rates have been a major factor in the market stagnation, with the average rate on a 30-year mortgage hitting 7.4%, its highest level in nearly three years. This surge in rates has stifled U.S. home sales, leading to a decline in the national median home listing price by 1.2% to $419,250 in September, marking the 11th consecutive month of decrease.

As a result, sellers are under increased pressure to lower their asking prices and provide concessions to buyers. Some homeowners are even prepared to make significant concessions, such as Liz Suder, a finance director with three kids, who had to lower the price of her four-bedroom home by $100,000 and add $9,000 towards repairs to finally sell it.

However, not all sellers are willing to lower their prices. Rick Ganga, facing a divorce that requires him to sell his home in Blaine, Washington, has not been able to lower his asking price any further despite multiple showings and a recent price cut.

The imbalance between buyers and sellers in the market is also a contributing factor. As of recent reports, there are about 21% of listings with their initial price lowered, a four-year high. In comparison, there are about 63% more sellers than homebuyers across the 50 largest U.S. metropolitan areas, indicating a sellers' market.

This imbalance means that many homeowners may have to wait longer to find a buyer, as witnessed by Ethan Butner, who has been trying to sell his home in Troutdale, Oregon, for the past two months without success.