What Price Reductions Tell Us About the Market

A price reduction is a signal that the original asking price did not generate the expected response. One reduction does not automatically mean that the new price is correct. However, patterns across several listings can indicate that seller expectations are above current buyer demand.

Agents should look at:

• the original asking price;
• the current asking price;
• the size of the reduction;
• the number of reductions;
• the time between each change;
• whether similar listings are following the same pattern.

Price history is particularly useful when an owner uses a competing listing as proof that their property should be listed at a higher price.