How much are home sellers dropping their prices?
With the ongoing tug-of-war between home buyers and sellers, lots of people are curious to know how much homeowners have to drop their prices to get a contract.
Here's the answer for those in the Baltimore region who sold in August: almost 9 percent on average. (That's the difference between asking $323,000 and getting less than $295,000.)
So says Metropolitan Regional Information Systems, which runs the multiple-listing service used to buy and sell homes in this part of the country.
Now, I was under the impression that this list price vs. sales price statistic looked at the last asking price, which means it wouldn't capture any and all of the price drops along the way to the final figure. But I asked MRIS recently -- you know what They say about assuming -- and learned that the company compares the original and final asking price before using the higher of the two.
In this sort of market, that almost always means the original figure.
What if a home is pulled off the market for, say, three months and put back on at a lower price? Then which figure matters when it sells? That I don't know. (Oh, the questions that occur to me after hours.)
Buyers think some homes are closer to the right price than others, which probably explains why 31 percent of properties were on the market for a month or less while 24 percent sat for four months or more.