More sellers may need to tweak their asking price, as more than one in five homes on the market nationwide posted a price drop in the last month, according to Redfin. That bodes well for buyers, who may find they have more negotiating power than in recent years, when the market favored sellers.
Last month marked the largest February rate for home price drops in at least a decade, Redfin notes in its analysis. “Many sellers listed their homes late last year, just as rising prices and mortgage rates were starting to price out their core pool of potential buyers,” says Jennifer Brockman, a Redfin agent in Las Vegas. “Meanwhile, some buyers are starting to think that waiting to purchase a home could pay off, especially as listing inventory continues to rise. In this new market reality, buyers may have negotiating power now that they won’t have in the spring and summer.”
Price drops are typical this time of year, but the numbers are starting out higher for 2019 when compared to the past several years. In some markets, a third or more of homes have posted a price drop. For example, in Fresno, Calif., 40 percent of homes had a price drop in February. The following is a chart from Redfin on some of the metro areas seeing the highest number of price cuts.