“..if a buyer hasn’t walked through the door in 30 to 45 days, a seller needs to lower their asking price. If a home hasn’t had an offer in six months, it’s time to rethink the sale..”
According to a report released by ZipRealty, the number of price-reduced homes on the market increased 3.26 percent in August compared to July. ZipRealty’s monthly review of MLS-listed properties in 26 major markets found that 47 percent of “for sale” homes had at least one price reduction and the average seller actually slashed their list price twice to attract buyers.
The growing number of price-reduced homes outpaced newly listed homes in August, which increased less than one percent, with sellers nationally reducing their asking price by an average of $19,092.
“It appears that homebuyers are taking their time as they don’t feel a sense of urgency to make an offer, unless the price is right, and sellers are having to aggressively cut their prices to stay competitive in this market,” said Leslie Tyler, vice president of marketing for ZipRealty. “We typically find if a buyer hasn’t walked through the door in 30 to 45 days, a seller needs to lower their asking price. If a home hasn’t had an offer in six months, it’s time to rethink the sale.”
Highlights from the survey:
- More than 47 percent of listed homes included at least one price reduction — an increase of 2.81 percent compared to July
- The median list price dropped 2.1 percent to $249,631 across the 26 markets surveyed
- The average price reduction is now 7.1 percent of the list price
- In seven major markets, more than 50 percent of sellers included a price reduction — Jacksonville, Phoenix, Minneapolis, Orlando, Tucson, Chicago and Austin
- Jacksonville, Fla., continues to serve as the market with the highest percentage of price-reduced homes, with 55 percent of all listings in August including at least one price reduction
- Denver had the lowest percentage of price-reduced homes with 33.2 percent, followed by Los Angeles (41.4 percent) and the Miami/Ft. Lauderdale/Palm Beach market (42.3 percent)
- Homes listed for sale in Miami/Ft. Lauderdale/Palm Beach were discounted 12.32 percent from the original list price, the highest percentage nationally, followed by Orlando (11.49 percent) and Jacksonville (11.24 percent)
- Buyers in Houston and Dallas found the smallest price reductions, with a median price cut of only $10,000 in each of the two markets
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