Typically price reductions are made when the house for sale is not sold in a market-average amount of time. Twenty years ago the average amount of time on the market was close to 90 days. Today the average is around 10 days. During this “seller’s market” there has been no need to reduce prices since the demand is much greater than the supply and because prices are rising. You can see this in the chart;
This year I think we have hit bottom with price reductions. With mortgage rates around 6 percent, buyers are dropping out of the market because now they can not afford to get a loan for the average-priced house. That usually means that sellers might lower the price of their house in order to sell.
It is interesting to see what has happened this year;
Price reductions are just one of many indicators that Realtors look for to forecast a changing market.
Please note – Information is taken from MIBOR’s (Metropolitan Indianapolis Board of Realtors) BLC (Broker Listing Cooperative). Information Deemed Reliable, but Not Guaranteed