The share of home listings nationwide that had had at least one price reduction rose to 17.2% in August. This marks the highest national rate of price reductions since August 2014, according to Trulia’s analysis of its home listings from September 2011 to August 2018.
In the first half of 2018, the share of home listings with price cuts on Trulia remained largely unchanged from 2017’s rates before “shooting up” in July and August. At the metro level, 63 of the 100 largest metros experienced an increase in the share of listings with price cuts. Las Vegas-Henderson-Paradise, Nevada experienced the widest percentage point change in reductions, moving from 12.6% in 2017 to 20.8% in 2018.
In 79 of the 100 largest metros, there is a strong correlation between how expensive a neighborhood is and the proportion of listings with at least one price cut over the past year: Homes in pricier neighborhoods have listing prices slashed more often than those listed in neighborhoods where homes are less expensive. Budget-conscious buyers in more-affordable neighborhoods may have a harder time finding a bargain.
The typical price reduction has gotten smaller since the early years of the recovery. Across the 12 months ending August 2018, the median reduction nationwide knocked 2.6 percent off the listing price – during the same period in 2011-2012, the median reduction was 4 percent.Read More