Best performing US markets now see biggest share of price cuts

Cities that once saw some of the biggest jumps in home prices during the pandemic now have the largest share of price cuts, according to data compiled by Zillow Group.

In May, the proportion of real estate listings with lower prices increased by an average of 11.5% in all 50 of the largest US metropolitan markets tracked by the real estate company this May, up from 8.2% a year ago. The share of lower listing prices rose the fastest in real estate hotspots like Salt Lake City, Las Vegas, and Sacramento, California.

The recent leap in borrowing costs – driven by the Federal Reserve’s interest rate hikes – has discouraged buyers and started to cool markets, Bloomberg reported.