The cost of buying a home just went up as mortgage rates rise and buyers continue to feel the sting on inflation.

Home sellers are now cutting their asking prices, one of the telltale signs that the red hot real estate market is cooling off.

But do rising mortgage rates mean a correction in the housing market is coming?

One month ago, homeowners listing their home in Hollywood were asking for $2 million. On Wednesday, the sellers dropped the asking price by $100,000.

Red hot just a few months ago, the Southern California real estate market seems to be cooling down.

“If you’re selling your house right now, you are already seeing a reduction in the number of showings, and if you’ve been on the market for anything longer than 14 days, you’re reducing your price,” said Khaled Yatim, a local real estate broker.

With mortgage rates more than double what they were just six months ago, and increasing inflation, many people who thought they were ready to buy, have been priced out.

“It’s unprecedented, you’ve never seen a run up in rates this quickly in history,” Yatim said. “People that once were so close to owning a home, making offers, a lot of them are trying to decide if they can even manage the payment any more.”

The selling frenzy of multiple offers, waiving inspections and ‘no contingencies’ appears to be over.

A homeowner named Joel told KTLA he can’t find a buyer for his property, and now his adjustable rate mortgage is going up.

“We’re worried that now our condo is going to sit on the market and we are going to lose two, three months of vacancy and that’s really going to put us behind,” Joel said.

Agents say they don’t expect housing prices to drop significantly, but with fewer buyers, it could force the market into a standstill.

And for prospective buyers, with rates expected go up again, Yatim says it might be the best time to buy for a while.