One of every six (16.7%) home sellers dropped their asking price in August, up from 15.9% one year earlier. According to data from Redfin, this marked the highest share for August in records dating back to 2012.
The typical home that sold in August went for 3.8% less than its original asking price—the steepest discount for that month since 2019. Nearly one in five (18.3%) single-family home listings had a price drop in August, compared with 12.8% of condo listings and 11.5% of townhome listings.
August’s percentage of home sales below the asking price was the third highest of the year, following the 16.8% share in June and 17.4% in July. Redfin noted the share of listings with price drops typically declines during these months, but for August the typical discount from the original list price is the biggest since before the pandemic.
“While some home sellers have come to terms with the realities of today’s housing market, many are still hoping to cash in on the pandemic-era housing market, when high demand was pushing many sale prices way over asking,” said Redfin Senior Economist Asad Khan. “Price drops can signal weakness to buyers and lead to further cuts, so home sellers should consult a local agent to set a realistic price from the beginning. It’s also wise for sellers to be patient, understand that it may take a few weeks or even a few months to offload their home in today’s slower-than-usual market, and be open to making concessions.”
