When inventory’s tight and the market’s competitive, you don’t see many price cuts on listed homes. Only in cases where a home has issues or was priced too high will you see its price slashed in hopes of attracting buyers. That’s a seller’s market – one where good homes receive multiple offers and commonly sell for above their asking price. These days, most markets still favor home sellers, even as the inventory of homes for sale has improved from recent lows. But while sellers still hold most of the negotiating power, according to one new analysis, more listed homes are seeing price cuts. In fact, the number of homes with a price cut in May was the highest it’s been in six years, with nearly a quarter of all homes for sale undergoing a price cut during the month. That’s a sign that the market is becoming better balanced, as the number of homes for sale grows and provides buyers with better options, less competition, and smaller price increases. (source)
