Historically speaking, 33% of homes on the market have had to undergo price reductions before they sell. In today’s market, only 24.1% of homes throughout the nation need a price reduction before going under contract. However, that number is rising quickly in markets where inventory is short, like in California, where 25% of homes need price reductions.
More price reductions tend to occur between April and September. That’s because many home sellers want to close before the school year and holidays begin. Interest rates can also influence how many homes undergo price reductions. In 2018, when interest rates rose from 3.9% to 4.9%, 37% of homes that sold needed to lower their prices before leaving the market.
Because there is still a shortage of inventory, sellers in our area shouldn’t have to worry about lowering their prices just to draw in buyers. If you or someone you know is concerned about having to potentially lower your home’s price or you have any questions, don’t hesitate to give me a call or send me an email. I’d love to speak with you.