Here’s when buyers might see further price cuts in the housing market – Sun Sentinel

For buyers looking for bargains in the housing market, there could be a time of the week when they could see homes with more price cuts, suggests a new analysis.

According to an analysis by Zillow, Mondays may be the best time to try to get a home with a price drop as 18% of listings have a price drop that day in South Florida, based on historical trends.

“As the housing market rebalances, homebuyers who are able to afford today’s market may be wondering when is the best time to look for a discount on their dream home,” the report noted. “The best day for business depends on the market.”

Zillow found that South Florida also had a higher percentage of homes with price drops on Tuesdays and Wednesdays, with 17 percent of homes having a price drop on those days.

Thursdays were slightly less with about 16% of homes on the market experiencing price cuts, with price cuts decreasing as the week progressed.

Mondays, or the beginning of the week, may have more listings with price drops due to the fact that there are more showings during the weekend, said Jeff Grant, real estate agent with the Jeff Grant Team in Palm Beach Gardens.

“We’re getting to the point where most of the activity is on the weekends as far as showings are concerned,” Grant said. “If you go by on a weekend and there’s no showing, that’s a good indication you’ll probably need to cut the price.”

More price declines are heading into the market as it continues to rebalance, due to some sellers who have been overzealous with their pricing in an attempt to hit record pandemic boom prices.

“The root cause of this is that sellers are holding on to what their neighbors got six or eight months ago,” said Ryan Greenblatt, associate broker at Lang Realty in Boca Raton. “Demand has slowed slightly due to interest rates. The number of people who moved here was not a sustainable amount. So the amount of people moving here has gone down a bit.”

According to data from RedFin, about 26% of active listings in the Palm Beach County marketplace experienced a drop in price, up from 14% a year ago. For Broward County, 23% of active listings had a price drop, compared to 13% a year earlier. And in Miami-Dade County, there were about 18% of active listings with price drops, up slightly from 11% a year ago.

“It’s a combination of homes that are overpriced and prices are down a couple of percentage points so far,” Grant said. “Eventually people who need to sell will value their home a percentage point or two below market in order to have a quicker sale. After a while, as more of those aggressive pricing gets into the mix, it will start to affect those who aren’t in much of a hurry to sell.”

Currently, average home selling prices in South Florida are on average 10% to 15% higher than they were a year ago, although prices have started to decline slightly month-over-month, according to Broward’s numbers, Palm Beaches and St. Lucie Realtors.

While more price cuts are on the way to the market, there are still areas where there is so much demand that sellers don’t need to make a price cut. Waterfront communities, homes in the East, and country club areas are all examples of still high demand.

“We’re seeing price cuts, but it’s very location-specific,” Greenblatt said. “Where there’s more supply, like in the west, you may see more price drops.”

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According to Zillow, the median percentage reduction in the market price of a home is about 3.4%, with real estate agents noting that it will range between 2% and 5% on average.

On average, that translates into a decrease of about $10,000 to $15,000, said Jeff Zucker, an economist at Zillow.

“It saves buyers money, but it also signals to them that the seller is serious about closing the deal,” he said. “I think it also reassures buyers that the list isn’t filled with competing offerings right now.”

How much of a deal a price cut offers a buyer also varies, depending on the home’s starting price.

“In most cases to get a deal, a buyer would need to be less than the price cut,” Grant said. “I think if buyers look at the market and see a home that has been on the market for 60, 70, 80 days and had price reductions, that could be an opportunity for them to make a deal with the seller. “

How long the home is on the market before you get a price cut varies. For homes such as a townhome or place in a senior community, they may be on the market longer before getting a price cut.

“It all depends on inventory competition, asking price, and whether or not you’re getting showings. There is no official timeline. If you’re not getting any showings within three to four weeks, then it’s time to have a conversation,” Greenblatt said.

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