Home price cuts have increased across the country, according to a study from realtor.com. According to the inventory data from realtor.com, frequency of price cuts increased in in 39 of the 45 largest markets in the U.S. The 45 markets analyzed saw a median price cut of 22 percent, than percent higher than August of last year, and seven percent higher than August 2013.
Nationally, the share of home price cuts went up to 19.1 percent in August, an increase from 17.6 percent year over year. Realtor.com notes that this may be an indication of a higher number of home sellers beginning to react to “buyer fatigue” and adjusting their reactions accordingly.
Realtor.com also states that the combined median list price in the top 10 markets with the biggest jumps in price cut frequency was significantly higher than the top 10 markets with the smallest jumps. The top 10 markets with large jumps had a median list price of $500,000 compared to $278,000 for the smallest.
Additionally, markets that have seen inventory growth appear to have shown the biggest jumps in price cuts. In the top 10 markets with the biggest jumps in the price cut share, inventory was up 19 percent year over year on average. The opposite is true for areas with low inventory. Inventory was down by five percent year over year in the top 10 markets with the smallest jumps in the price cut.
According to realtor.com, the inventory shortage appears to be slowing, a factor in the increase in price cuts. There were only two percent fewer for-sale listings on the market in August 2018 than there were in August 2017, while inventory also increased 2 percent month over month in August. Around 488,000 new listings entering the market during that month, but realtor.com predicts it would take around 24 more months until the market flip into the buyer’s favor, even with price cuts across the country.
For more info, visit Realtor.com.