A "normal" housing market by July?

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Home sale reality?
Welcome to the Know the Difference Minute. It’s Thursday, June 16th.
Is housing cooling off? According to real estate analytics firm Altos Research, more than 25% of homes currently on the market have cut their prices. But that’s not unusual even in a hot market.
Rising mortgage rates and the direction of the economy are slowing the roll. Insiders say the shift is underway from buying frenzy to much more normal conditions. Mortgage rates were low, the pandemic created demand and the supply was low which created bidding wars and offers over asking.
That was then. In normal conditions, about a third of homes listed on the market drop price before being sold. In hot markets, it’s about 25%--and that’s where we’re at now. When things were really active over the last 18 months or so, only 14% felt compelled to lower prices.
Altos expects normal housing market conditions by July.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.