In DC's Seller's Market, Home Price Reductions Less Common

• July 10th 2020

by Nena Perry-Brown

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Not only has homebuyer demand continued to defy COVID-informed expectations, but more evidence is also being revealed on how low supply is affecting home prices.

A new report out from Zillow reveals that fewer listings on the market are seeing price cuts in 2020 compared to previous years. In the last week of June, just over 4% of active listings nationwide underwent a price reduction, down from 5.6% during the same week last year. 

In the DC area, 4.8% of active listings underwent a price cut in the last week of June compared to around 7% the same week in 2018 and 2019. Overall, sellers feel comfortable maintaining their asking price because there are so few options on the market.

"The data strongly suggest that sellers understand how little competition they truly face in the current environment: Active listings remain near record lows nationwide," the Zillow report said. "Buyers may not like or agree with the asking price on homes they like, but realistically they may not have many other options but to accept it."

The Zillow report looks at all the listings for which the price was lower at the end of the week than at the beginning, dividing those by the number of total active listings.

This article originally published at https://dc.urbanturf.com/articles/blog/listing-price-cuts-in-dc-area-down-more-than-2-percent-year-over-year/17055.