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The number of homes with price cuts jumped by nearly 6%, according to a new analysis.
Now, the Alamo City has a new distinction: it's among the U.S. housing markets with the largest percentage of price cuts, according to a Bloomberg analysis of Zillow data.
Using Zillow's numbers for the 50 largest metro markets, Bloomberg compared the number of active home listings with price cuts in May 2022 to the percentage with price cuts a year prior.
The Sacramento, Salt Lake City and Phoenix metros experienced the biggest jump in the number of homes with price cuts, while San Antonio came in at No. 6. Home prices here dropped 5.9% from May 2021 to May 2022, according to Bloomberg.
Bloomberg attributed the rise in price cuts to the Fed's decision to raise interest rates, coupled with rampant inflation. At the time of reporting, the average interest rate for a 30-year fixed mortgage on a $400,000 home loan in Texas for someone with a credit rating above 700 is 6.5%, according to data collected by Google.
Recently, San Antonio was named as one of the most overvalued housing markets in the U.S., with homes on average being overvalued by 30%, according to a report by Florida Atlantic University.
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