T
ired of hearing about sky-high housing prices? Good news: pandemic boomtowns are leading the way in housing price cuts. According to Zillow, 26.6% of for-sale listings saw a price reduction this June, signaling a shift in the real estate market and giving buyers an advantage.

    The initial surge of people moving to these boomtowns is slowing down, contributing to the change. Several factors are at play:

    * Slowing population growth: The demand isn't as intense as it once was.

    * Affordability ceilings: Rising mortgage rates and inflation are forcing potential buyers to stay on the sidelines.

    * Increasing inventory: The number of homes for sale is finally rising, giving sellers competition.

    Cities with explosive growth during the pandemic are adjusting to a more balanced market. Denver (38.3%), Raleigh (36.4%), Dallas (35.5%), Nashville (35.5%), and Phoenix (35.5%) are seeing the most price cuts.

    Not all cities are experiencing declining prices, however. Cities with limited inventory and strong local economies are holding up better, including Milwaukee (13.9%), New York (15.6%), Hartford (16.0%), Buffalo (18.3%), and San Jose (22.1%).

    Kansas City (+5 percentage points), Buffalo (+3.9 percentage points), Indianapolis (+3.8 percentage points), Columbus (+3.3 percentage points), and Minneapolis (+3.2 percentage points) are seeing the biggest jump in price cuts.

    For buyers, this means fewer bidding wars, more options, and more time to decide. Sellers may be willing to offer incentives like paying for closing costs or buying down mortgage rates.

    Sellers need to get realistic about pricing competitively, marketing their homes well, and being prepared to negotiate. As a real estate enthusiast, I believe this rebalancing is healthy and gives more people a chance to achieve homeownership.

    The data from Zillow indicates the housing market is shifting nationwide, with the Federal Reserve's rate hikes playing a role in declining prices. For those looking to enter the housing market, now may be the perfect time while mortgage rates are still reasonable.