Many homes are sitting stagnant on the market, causing more frequent price drops

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Home sales are falling as cities like Los Angeles and Philadelphia struggle with low buying numbers.

Sellers are pricing their homes at record-high prices, but buyers aren’t biting. High interest rates and high listing prices are keeping buyers away. This does mean that the buyers who are still looking have some wiggle room they haven’t had in the last few years. Pending home sales fell by 3.8% for the first half of June, the largest decline in about four months, according to Redfin data.

Cities that were once real estate hot spots have gotten a little too hot in recent years, with high prices dissuading homebuyers from purchasing homes. Los Angeles and Philadelphia are two of the major cities seeing low buying numbers. In Los Angeles County, home sales are occurring at a record low pace. Just over 107,000 homes in L.A. County were sold in last 24 months, which is the slowest selling pace since 1988. It’s also the ninth-consecutive month a record low number of sales occurred.

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