According to research done by Redfin, sellers in the U.S. are feeling compelled to drop their prices as homebuyers become more selective and the market starts to change. In the last month alone, 26.6% of homes listed for sale had a price drop. This is acting as an early sign of a softening market, as sellers are starting to have problems getting the prices or bidding wars that they would have gotten a few months ago.
The share of homes with price drops has been increasing consistently since last March, with Las Vegas, San Jose, Seattle, and Atlanta were some of the markets that posted the biggest drops in prices. The housing demand index has also been on the flat side since the summer, further suggesting a slow down in the market.
Experts are wondering if sellers are using price-drops to keep up the interest that they may have seen earlier in the year. With buyers having a little more wiggle room to consider which houses they are actually going to put an offer in for, sellers using small price adjustments as incentives for buyers to want to bid on their home.