SEATTLE, Sept. 20, 2018 /PRNewswire/ -- (NASDAQ: RDFN) -- Signs continue to point toward a changing market that's letting homebuyers be more selective as supply constraints begin to ease in the hottest markets, according to Redfin (www.redfin.com), the next-generation real estate brokerage. As a result, sellers are feeling compelled to adjust their expectations — and their prices. In the four weeks ending on September 16, 26.6 percent of homes listed for sale had a price drop, the highest level on record since Redfin began tracking this metric in 2010. We define a price drop as a listing price reduction of more than 1 percent and less than 50 percent.
"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," said Taylor Marr, Redfin senior economist. "But there are some early signs of a softening market, and 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."
According to a Redfin analysis of all homes actively listed on the MLS for sale in the markets where Redfin operates during the four weeks ended September 16:
The share of home-sellers who dropped their price increased 4.8 percentage points from the same period a year earlier, when 21.7% of homes had a price drop.
The share of homes with price drops has been posting year-over-year gains consistently since late March.
Las Vegas (+12.3 points to 28.1%), San Jose (+10.7 pts to 25.7%), Seattle (+10.1 pts to 37.1%), and Atlanta (+9.0 pts to 27.9%) were among the markets that posted the biggest year-over-year increases in the share of homes with price drops.
"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," said Jessie Culbert, a Redfin agent who works with sellers in Seattle. "Ultimately, the market dictates the appropriate price for any given home. We use data and on-the-ground insight to recommend the initial price, but sometimes we just need more exposure to the market, or more time to hear feedback, and then we'll work with our clients to adjust the price accordingly."
About Redfin Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, subscribe here. To view Redfin's press center, click here.