Sellers Having to Reduce List Prices

One in four home sellers are reporting they’ve had to lower their list price, according to a new report released by the real estate brokerage Redfin. That represents the highest level since 2011, according to the Redfin survey. It also represents a far greater number than in February, when just one in seven sellers reduced list prices.

More home buyers are showing a willingness to wait until the price is right, according to Redfin. This is called pricing ahead of the market and sellers should be wary of pricing too far ahead of the market as time works against you and overpriced homes will not sell.

Price drops for homes were most prevalent in Atlanta, in which 42 percent of home sellers reported lowering their prices in September. Sacramento, Phoenix, San Diego, and Seattle also saw price reductions of more than 30 percent on homes for sale, according to Redfin.

On the other hand, the area that saw the fewest price drops was Long Island, N.Y. Raleigh, N.C., San Antonio, Houston, and Philadelphia also saw some of the fewest price drops.

Source: Redfin