For much of the first half of 2018, the share of listings on Trulia with a price cut was largely unchanged from 2017, before shooting up in July and August. In August 2018, 17.2 percent of U.S. listings had a price cut, up from 16.7 percent a year ago.
Coupled with home price growth that’s begun to slow, and inventory levels that are creeping back up in some places, a higher rate of price cuts could be a critical third confirmation that things may finally be shifting in buyers’ favor, says Trulia Housing Economist Felipe Chacon.
“Buyers should be encouraged by the signals we’re seeing in the market,” says Chacon. “But not all buyers will benefit equally, and it pays to do research on your preferred neighborhood. Price reductions typically aren’t uniformly spread out across a given city. Our research shows that price cuts are much more prevalent in higher-cost neighborhoods.”
While increasing price reductions is welcome news for most, not all homebuyers are likely to benefit equally, says Trulia. In 79 of the largest 100 metros, a higher share of homes listed in more-expensive neighborhoods are experiencing price reductions than those listed in less expensive areas.
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