Odds of selling drop to the lowest levels since quarantine, price reductions continue.
The Odds of Selling is where I take into account the total number of homes available in the market vs. those that go under contract and or close in the same week and project it forward for a 30 day period of time. The Odds of Selling this week dropped to 49.9% for all price ranges, matching the Odds of Selling that we saw when we went into quarantine in 2020. The Odds of Selling is typically 53.4% for the month of September based on data from 2013-2021 on average. The Odds of Selling typically stabilizes if not slightly trends upwards as we head into Q4.
Price reductions continue to be prevalent in our market. Based on data from last week 47.7% of all units that went under contract made price reductions, with the average price reduction -6.5% or nearly $47,000 off of the original list price. Typically in the month of September we 31.4% of homes reduce their price based on data from 2013-2021 with an average price reduction of 5.1%. Price reductions are not only more prevalent but larger than experienced in this real estate cycle leading us to believe this is a deeper correction than just the seasonal norm.
