HOUS - Home sellers in what were the hottest markets start to lower asking prices

Asking prices for almost two-thirds (61.5%) of homes for sale in Boise, Idaho, dropped in June, according to an analysis from tech-powered real estate brokerage Redfin. That represents the biggest decline of the 97 metro markets in the report.

The cooling of housing markets is especially pronounced in metro areas that saw an influx of residents early in the pandemic. During the height of COVID, a wave of households left coastal urban areas to move to less dense areas.

"Higher mortgage rates and a potential recession are causing prospective buyers in popular migration destinations to press the pause button, and they’re also having a big impact on workers in big job centers who rely on their stock portfolio for down payments," said Redfin Senior Economist Sheharyar Bokhari.

The market with the next biggest drop in asking prices is Denver (55.1%), followed by Salt Lake City (51.6%). Also in the top 10 list are: Tacoma, Washington (49.5%): Grand Rapid, Michigan (49.3%); Sacramento (48.7%); Seattle (46.3%); Portland, Oregon (45.7%); Tampa, Florida (44.5%); and Indianapolis (44.1%).

More than 25% of home sellers reduced their price in three-quarters of the U.S. metro areas in June, the company said.

El Paso, Texas, saw the lowest drop, with 13.3% of home sellers trimming their asking price. That's followed by Newark, N.J. (14.1%); Honolulu (16.8%); Milwaukee (17.4%); and New Brunswick, N.J. (17.8%).

In the past year, real estate brokerage stocks have generally fallen more than the S&P 500's 13% decline as seen in this chart , with more traditional brokers such as Anywhere Real Estate ( HOUS ), formerly Realogy, and Re/Max ( RMAX ) dropping less that the more tech-focused names such as Redfin ( RDFN ), eXp World ( EXPI ), and Compass ( COMP ).

Earlier, mortgage rates moved higher to 5.5%, reducing affordability for many homebuyers

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