As the slowdown has extended into the summer months, not unexpectedly, the sellers that have been on the market longest have clearly given up the deepest price reductions.
But, more interestingly, now 53% of all single family homes listed with the MLS have price reductions. Even sellers that have just recently put their homes on the market are making significant price reductions.
Additionally, price reductions have been greatest, as a percentage, for homes originally listed above one million dollars.
The data was ferreted out using ZipRealty.com and includes the following
The following data points now stand:
- There was 1230 single family homes with price reductions out of a total of 2311 listed.
- Homes listed between 5 and 30 “days on the market” showed an average price reduction of 3.9% with some showing in the range of 12% – 16%.
- Homes listed between 175-600+ “days on the market” showed an average price reduction of 9.64%.
- Homes originally listed above one million dollars had an average price reduction of 11.68%.
- 8.7% of homes have been on the market for longer than 175 days.
There are some noticeable trends when looking at the individual listings as well.
First, although sellers still seem to be moving rather slowly at making significant price reductions, there are clear signs of price competition.
Irregular reductions, where sellers break from a consistent reduction pattern and reduce several times, sometimes in just a matter of days, are common.
Also, new sellers seem to be more educated to the state of the market as there are many sellers making their first reductions well within the first 30 days of their listing.