According to a Redfin analysis, nearly 27% of home sellers reduced their listing price by at least 1 percentage point during a four-week period ending Sept. 16, 2018.
The 26.6% of home sellers who lowered their selling price during that period, according to Redfin, is a record—at least since the metric began to be regularly tracked in 2010.
Taylor Marr, a Senior Economist at Redfin, says buyers are becoming choosier in response to a softening market.
“After years of strong price growth and intense competition for homes, buyers are taking advantage of the market’s easing pressure by being selective about which homes to offer on and how high to bid,” Marr said.
“…The increase in price drops may be another indicator that sellers are going to have trouble getting the prices, and the bidding wars, that they may have just months ago…Instead, many are finding their homes are sitting on the market without much interest until they start reducing their prices.”
The number of home sellers who dropped their selling price has increased 4.8% from the same period one year ago, according to the same analysis.
During that period, 21.7% of homes experienced a price drop. Since late March, that trend has continued fairly consistently.
Jessie Culbert, a Redfin real estate agent in Seattle, believes that sellers are using price drops strategically rather than out of urgency or desperation.
“In a market where we’re seeing more inventory, sellers may choose to use price reductions to continue to generate interest in their home for sale,” Culbert said.
“Ultimately, the market dictates the appropriate price for any given home.”