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Price cuts are becoming more common across the nation and in the Boston metro area, but they’re not growing nearly as fast as in the rest of the country.
An analysis of MLS data by economists at the brokerage Redfin found 16.4 percent of active residential listings in Greater Boston had a price cut in August. This is an increase of 2.2. percent year-over-year.
The analysis found the average price cut in Greater Boston in August was a 3.9 percent reduction in price, but the average sale-to-list price ratio in Boston sat at 100.7 percent, compared to 100.4 percent in August 2024.
The report combined both single-family and condominium listings into one category.
“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,” Redfin Senior Economist Asad Khan said in a statement. “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.”
Nationwide, 16.7 percent of home sellers dropped their asking price in August, up from 15.9 percent a year earlier and the highest share for that month in Redfin’s records dating back to 2012. The typical home that sold in August went for 3.8 percent less than its original asking price, which represents the steepest discount for that month since 2019.
The researchers found 18.3 percent of U.S. single-family-home listings had a price drop in August, compared with 12.8 percent of condo listings and 11.5 percent of townhome listings.
The market with the biggest share of listings that dropped their price in August was Denver, at 31.1 percent, followed by Indianapolis (30.7 percent) and San Antonio, Texas (28.5 percent). At least a quarter of sellers in seven other metros dropped their prices last month, as well: Austin, Dallas, Tampa, Houston, Jacksonville, Portland, Oregon and Fort Worth.
