While high-interest rates are weighing heavily on homebuyers, they also are prompting a record number of sellers to drop their prices. This information comes from an analysis of pricing data from Redfin Corp., which found that 20.8% of active listings nationally had a price drop in October.

In Denver, 46.5% of active listings had a price drop in October, Redfin found. The only other metros with a higher percentage of listed homes with a price drop that month were Cincinnati (55.2%) and Indianapolis (51.3%).

Nationally, the weekly average for price drops was nearly 7% for the four weeks ended Oct. 29. That's the highest point on record, according to Redfin.

While Denver is among the top metros seeing price drops, homes were still nearly meeting their expected sales prices with the average list-to-sale price reaching 99% in October. Redfin also found 26.3% of homes sold were over the list price.

In October, Denver's median home sales price and list prices were $575,000 and 3,138 homes were sold — 10.47% fewer than the year prior, according to Redfin.

Interest rates aren't the only factor in the drops, but they are compounding the affordability equation at a time when many sellers are pricing aggressively.

Some sellers are pricing too high because they have a fear of missing out after their neighbor’s house sold well over the asking price two years ago. Low inventory is driving some competition, and relatively affordable homes in popular neighborhoods are still selling fast, but they’re getting only two or three offers as opposed to 20 offers at the height of the market.

With interest rates hovering between 7.5% and 8%, many buyers just don't have the budget they once did. Even with a higher percentage of sellers cutting their prices, median sales prices remain up 3% compared to a year ago, according to Redfin.

If you’re considering becoming a homeowner, you do have options. Contact Metrowest today and let’s see what’s out there!