"Nearly 41.2% of active single-family listings include price reductions. The median cut is 4%, amounting to roughly $17,230 off the typical $427,900 listing price. Homes are sitting on the market for a median of 77 days, and 10.2% of listings are being relisted a sign that deals are falling through or sellers are testing lower price points. In most metro areas, the typical reduction falls between $10,000 and $25,000."
"Austin ranks high with 52.5% of listings marked down, with an average reduction of $22,236. In Pittsburgh, 47.2% of homes listed saw cuts, at an average markdown of $13,346, while New Orleans posted a 40.5% cut rate with an average reduction of $13,361. Indianapolis has the highest price-cut rate in the nation at 56.3% bucking assumptions about bargain-market stability. More affordable markets are mixed."
"Based on these patterns, three likely scenarios are presented: Base case scenario 60% probability Price-cut rates: 42% to 44% Median cut magnitude: 4.2% to 4.5% Typical cuts, in dollars: $18,000 to $20,000 Days on market: 80 to 85 Winter slowdown scenario 25% probability Price-cut rates: 45% to 48% Median cut magnitude: 4.5% to 5% Typical cuts, in dollars: $20,000 to $25,000 Days on market: 85 to 95"
Price reductions affect roughly 41.2% of active single-family listings, with a median cut of 4%, about $17,230 on a typical $427,900 listing. Homes have a median of 77 days on market and 10.2% of listings are being relisted, indicating deals fall through or sellers test lower prices. Typical metro reductions range from $10,000 to $25,000. Austin, Pittsburgh, New Orleans, and Indianapolis show elevated cut rates and differing average markdowns, with Indianapolis highest at 56.3%. Inventory swings between 2.2 and 2.9 months. Forecast scenarios assign probabilities and ranges for price-cut rates, cut magnitudes, dollar impacts, and days on market.
Read at www.housingwire.com
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