How long should I wait to make a price reduction?
For the first 4 months of 2022 median days on market was 4 and we knew that if a home was on the market longer than a week a price reduction was likely necessary. With the market shift, showings slowing and fewer buyers looking as kids head back to school we may need to adjust the rate at which we are making price reductions. These are overarching trends and it's important that you focus on your local market to make a decision as to when to reduce a property. Let's review the 3 strike rule. Based on data from last week average priced properties were receiving 2 showings per week. If you are not getting 2 showings per week it may be time to consider a price reduction.
We also track how many showings to go under contract, and based on data from last week it was an average of 13 showings should yield a contract. So if you've have a total of 13 showings and no offers you may need to consider a price reduction, which may be strike 2. Lastly, looking at median days on market or the point at which half of the homes are under contract for last week was 18 median days on market. If you hit strike 3 and are on the market longer than 18 days you may need to consider a price reduction. Download the weekly report to see how many price reductions and how much of a price reduction is being made by price range.
