Shocker: The Average Size of a Price Drop is 10.7%
Just before going home on Friday night, Redfin’s Jeff Yee just ran a query against all the active listings in our entire database, which includes listings from brokers, banks and owners selling their own home in Seattle, San Francisco, San Jose, Los Angeles, Orange County, San Diego, Chicago, Boston and Washington, D.C. areas (see links for local statistics on price reductions).
What he found: 38% of currently active listings have undergone a price reduction at some point since going on the market. But it was the average magnitude of the drop from the original list price that shocked everyone here: 10.7%.
The data-set hasn’t been scrubbed for outliers, and it doesn’t account for price drops where the seller pulled his listing from the market and quickly re-listed at a different price. But it still provides a quick portrait of a market where discounting has begun to spur more activity among buyers.
A Seattle broker mentioned this morning that he sees sellers racing to find a buyer before Halloween, which may explain why we’re now seeing such big drops. What’s happening in your market?
Thanks to Matt Goyer on Twitter for the tip.
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