As of September, the number of price cuts nationwide was at its highest point since the recession. Throughout the last half of August and first half of September, over a quarter of homes — 26.6% — took a price cut. While it’s normal for price cuts to be more common in the third quarter, as holidays are approaching but not yet upon us, the trend has been upwards for several years. This means sellers should begin listing lower in 2019, realizing that they are listing their homes above value for the market conditions brought on by income not keeping up with prices and rising interest rates.
In California, price cuts were on the rise in every major city. Very significant increases occurred in the following counties:
- 56% of homes in Fresno;
- 49% of homes in Bakersfield;
- 40% of homes in Sacramento;
- 37% of homes in San Diego;
- 31% of homes in Orange County;
- 28% of homes in Riverside;
- 25% of homes in Los Angeles; and
- 13% of homes in San Francisco.