If you lived in Illinois in the 1980s you likely recognize the ad below. It explains what's about to happen to home prices.

Immediate Discounts!

Key Points

• Immediate discounts
• Everything must be sold regardless of price
• Take your choice
• Sacrificed below dealer cost

I saw commercials like those every time I watched a CUBS game on channel 9. 

Other notable ads I remember: Maydays are Heydays, We're Jammed Up in June, We Go All Out in August.

OK, let's return to the present.

Home Sellers in Migration Hotspots Increasingly Turn to Price Drops

“Many places like Boise or Sacramento that saw a surge in migration and a sharp increase in home prices over the past two years have now seen an abrupt drop-off in demand, leading sellers to drop their prices with increasing frequency,” said Redfin chief economist Daryl Fairweather. “When mortgage rates were at or below 3%, both local and out-of-town homebuyers were more willing and able to tolerate high prices, but at 5%, many are now priced out. A home’s price is driven by the balance of supply and demand, and when demand drops off and supply increases like it is now, rapid price increases evaporate quickly.”

More than 20% of home sellers dropped their price in April in seven of the 10 most popular April migration destinations (Cape Coral, FL; Sacramento; North Port, FL; Tampa, FL; Atlanta, GA; San Antonio, TX and Phoenix). For home sellers in these markets, the sharp increase in mortgage rates has knocked some of the wind out of a housing market that had been super-charged by surging migration.

“Conversations with prospective sellers are longer and more emotional now than they were just a few months ago,” said Boise, ID, Redfin real estate agent Shauna Pendleton. “If your home has been listed for several days with little or no interest from buyers, it’s time to consider dropping the price. If you do have to drop the price, you are far better off doing one large price drop instead of a series of smaller price drops, because a larger number of drops is often interpreted as desperation and encourages buyers to wait even longer or make a lower offer.”

Deep Deep Discounts 

"Deep, Deep Discounts," said Bert Weinman in most of the ads. That will soon apply to houses. 

Buyers Be Patient!

“If your home has been listed for several days with little or no interest from buyers, it’s time to consider dropping the price. If you do have to drop the price, you are far better off doing one large price drop instead of a series of smaller price drops, because a larger number of drops is often interpreted as desperation and encourages buyers to wait even longer or make a lower offer,” said Redfin real estate agent Shauna Pendleton.

For the first time in years, buyers need to be patient. 

It's sellers that need to hurry.