Nearly One Third of Homes for Sale in October Had a Price Drop
Redfin is reporting that while U.S. home prices continued to increase (up 4.5%), they report that in October, 31.3% of homes for sale had at least one price drop of more than 1% – which they say is the highest share of price drops on record since Redfin began tracking them in 2010. In Seattle, for example, almost half of homes for sale had price drops, with an average price cut of $27,500, down from more than $30,000 a year earlier.
“…Some homebuyers are adjusting their price range down, and others are backing out of home-buying entirely–deciding that renting is a better deal. Sellers are now realizing buyer demand isn’t what it used to be and are dropping their prices. When buyers and sellers are on the same page, the market moves quickly, but since sellers were slow to react, we’ve seen a slowdown in the housing market.” Said Redfin chief economist Daryl Fairweather.