While some are quick to assume that if a home is on the market for more than a week or two, something must be wrong with it—especially if its listing price drops—that’s not necessarily the case.
Sellers may choose to reduce the cost of their property for a variety of reasons, including situations where they have listed it at a price that might have commanded it in 2020 or 2021, but doesn’t hold up in today’s market.
But regardless of why a property is offered at a discount, these price drops occur more frequently on some days of the week than others. Here’s what potential home buyers need to know.
When to look for price reductions in real estate listings
According to research from Zillow, nationwide, more property price reductions (18.5%) are made on Thursdays than any other day of the week. It also happens to be the case that more properties are listed and come on the market on Thursdays as well.
But it is also important to note that Mondays (17.5%), Tuesdays (17.0%), and Wednesdays (17.6%) see their fair share of price cuts, whwith they are less common on Fridays (13.7%), Saturdays (5.8%) and Sundays (9.9%).
Additionally, while listing prices tend not to change over the weekend, in some markets, Thursday is not necessarily the best day for transactions. For example, drops in listing costs are most common on Mondays in Cleveland, Detroit and Miami, and on Tuesdays in Baltimore and Philadelphia, Zillow reports.
So what does this tell us? If you are monitoring property listings, hoping that the price will drop on a property you are interested in, and you see a reduction on a Monday or Tuesday, that’s probably it for the week. Don’t sit around and wait for another cut on Thursday – if you’re serious about the house, take action before another potential buyer does.
How much will the price of a property typically drop?
Property price reductions depend on a variety of factors, including the home’s location, the current interest rate and trends in the housing market. But according to Zillow, the median price drop in 2022 was about 3%, which works out to about $11,000 on the average home, based on the company’s research.
Before the onset of the COVID-19 pandemic, homeowners typically waited to lower the price on their property to it was on the market for about a month. But since 2020, discount happened faster – about three weeks after they went on the market, Zillow reports.