1 in 5 home sellers are now lowering their asking price as the housing market cools

Houses are simply not being sold at the dizzying rate they were six months ago:
Houses in August sat on the market an average of five days longer than a year ago.
The median listing price in August fell to $435,000 from $449,000 in July.
The average home sold for less than its list price for the first time in more than 17 months during the four-week period that ended Aug. 28, according to Redfin.
Home sellers are getting nervous, as the once-hot housing market is cooling fast.
One in five sellers dropped their asking price in August, according to Realtor.com. A year ago this rate was only 5%.
Homes simply aren't selling at the breakneck pace they were six months ago, when strong demand was pitted against tight supply, bidding wars were the norm, and a seller could often get a signed contract within a weekend.
Houses in August sat on the market an average of five days longer than a year ago - the first annual increase in time on the market in more than two years.
The supply of houses for sale is also increasing rapidly, an increase of almost 27% compared to last year, even when fewer sellers decide to list. Pending sales in July, which represent signed contracts on existing homes and are the most recent sales data available, were nearly 20% lower than in July 2021, according to the National Association of Realtors.
"For many of today's buyers, the increase in options for selling homes removes the sense of urgency they felt the past two years, when inventory was scarce," said Danielle Hale, chief economist at Realtor.com. "As a result of this shift, along with higher mortgage rates, competition continued to cool in August, as listing price trends suggest homebuyers are tightening their wallets."
Mortgage rates have been rising since January, peaked last in June and then fell back slightly in July and much of August. However, it is rising again and is now almost matching the June high.
Redfin reported that requests for home tours and its risky home purchases at the end of August fell by 16% compared to the same period last year. Travel activity has also decreased by 9% since the beginning of the year, compared to an 11% increase in the same period last year, according to home travel technology company ShowingTime.
"The slowdown after Labor Day will probably be a little more intense this year than in previous years, when the market has been super tight," said Daryl Fairweather, Redfin's chief economist. "Expect that the houses will remain on the market, which may lead to another small increase in the share of sellers who will lower their prices."