Days on market stretching out.
As we get closer to the school year and fall approaches median days on market tends to stretch out. We experienced 4 median days on market for the first 4 months of 2022 and now in the last month or so we've watched this number continue to climb. Median Days on market for this last week for units going under contract was 16. So, half of the homes are under contract in just over 2 weeks and the other half are taking longer to sell. This number is likely to increase as we round out 2022.
With longer days on market, we also continue to see the rate of price reductions increase. This week for pending units going under contract 46.6% of them made price reductions. It's important that if you are using comps from earlier this year that you are pulling back 5-7% on your initial pricing strategy as the average size of a price reduction is about 6.1% based on data from last week.