Home prices have been increasing for a while. But their consistent upward climb is starting to slow, according to new data. In fact, a recent analysis has found the number of home sellers who have reduced their listing price is up from where it was last year.
The research shows 17.2 percent of homes for sale reduced their price in August, up from 16.7 percent last year at the same time. While overall home prices are still increasing, more and more homes are dropping their prices after they have bid too high. That’s encouraging news for hopeful home buyers who have been keeping an eye on affordability conditions. Despite price reductions hitting their highest level since 2014, that doesn’t mean every neighborhood is part of the trend.
For example, there are more reductions seen at the higher end of the housing market than in more affordable price brackets. While you may be able to find a better deal in a pricier neighborhood, you may not have as much luck in the more affordable locations popular with entry-level and first-time home buyers. That’s why potential home buyers should do some research on their preferred neighborhoods and get an idea of where they’ll be able to get the best deal.