The number of home sales might be increasing each month across the nation, but that doesn’t mean that sellers are getting the prices they want for the residences they sell. A new survey by national brokerage Redfin shows that about one in four sellers across the country actually have to reduce their listing price before closing a sale.
The bad news? The percentage of home sellers who have to reduce their asking price at least once is on the rise.
Redfin reported that in September of this year 25.1 percent of home sellers reduced their asking prices. That figure stood at just 13.4 percent in February. September’s mark was the highest recorded since 2011.
The increased frequency of price drops actually meshes with Redfin’s most recent market sentiment survey in which a large number of home sellers reported that they were disappointed in buyer interest for their residences.
Of course, some of this might be seasonal. The summer and spring of 2013 were busy times for home sales. The homes left over in the colder months might not be as attractive to buyers. At the same time, many consumers who wanted to buy homes already have done so in the spring and summer.
The Redfin survey, though, does indicate that housing prices might either stabilize or dip a bit as buyer demand fades. Let’s just hope that prices don’t plummet again. That’s something that the economy doesn’t need.