One in Four Home Sellers Now Forced to Lower Their List Price, According to Redfin Report
Atlanta Leads the Nation in Prevalence of Listing Price Reductions
SEATTLE, Nov. 6, 2013
SEATTLE, Nov. 6, 2013 /PRNewswire/ -- Redfin (www.redfin.com), the technology-powered real estate brokerage, today released a report on the recent surge in the percentage of U.S. sellers to reduce their home's asking price.
In September 2013, 25.1 percent of home sellers reduced their asking price, compared to just 13.4 in February. This was the highest level recorded since 2011. The increased prevalence of listing price drops, a common strategy to drum up renewed interest in a home that has yet to sell, corresponds with the findings of Redfin's latest market sentiment survey, in which home sellers reported their disappointment in buyer interest.
With the 2013 home-buying frenzy officially over, Redfin agents report that homebuyers are increasingly willing to wait until the price is right. Redfin agent Collin Horn recently helped his clients seize a price-drop opportunity in Seattle's Madison Valley neighborhood. "When my clients first toured the three-bedroom townhome, they felt it was overpriced at $489,900," Collin said. "The next morning, they received a Redfin Instant Update that the price had been reduced by $30,000. That day, they submitted a full-price offer, which the sellers accepted. My clients were able to take advantage of a price drop because they were flexible and willing to wait for the right home at a price they felt comfortable paying."
The report's key findings include:
- Price drops were most prevalent in Atlanta, where 42% of home sellers lowered their prices in September. Atlanta was closely followed by Sacramento (35%), Phoenix (32%), San Diego (31%) and Seattle (32%).
- Long Island, NY saw the lowest rate of price drops, with 16% of sellers reducing their listing's price in September, followed by Raleigh, NC (20%), San Antonio and Houston, TX (both 22%), and Philadelphia (22%).
For the full report, including a ranking of 20 cities by annual increase in price drop rates, click or paste the following link. http://blog.redfin.com/blog/2013/11/one-in-four-home-sellers-forced-to-lower-their-asking-price-in-september.html,
Redfin (www.redfin.com) is a technology-powered real estate broker that represents people buying and selling homes. Founded and run by technologists, Redfin has a team of experienced, full-service real estate agents who are advocates, not sales-people, earning customer-satisfaction bonuses, not commissions. Redfin online tools feature all the broker-listed homes for sale, as well as for-sale-by-owner properties that don't pay brokers a commission. The company serves 22 U.S. markets and has closed more than $8 billion in home sales. In 2012, Redfin was named one of The DIGITAL 100: World's Most Valuable Private Tech Companies by Business Insider. Follow us on our blog (blog.redfin.com), Facebook (facebook.com/redfin), Google+ (plus.google.com/+Redfin), LinkedIn (linkedin.com/company/Redfin), and Twitter (@redfin).