The price gains, however, are shrinking, as the seasonal drop in home prices this time of year appears to be much deeper than usual.Conversely, homes sitting on the market for more than 120 days saw prices reduced by an average of 15.8%."On the lower end, that is likely due to the severe shortage of available homes in that price range.First-time buyers, who are likely most sensitive to the increase in mortgage rates, made up just 28% of sales, down from 29% the year before.Investors or second-home buyers pulled back, buying just 16% of the homes sold in October compared with 17% in October 2021."