October 2024. Price Reductions on the Rise?

By Matt Stark

Matt Stark is a top 1% REALTOR® in Seattle with over 19 years of experience. A Seattle native, he began his career in 1999 as an investor before transitioning to full-time real estate.

A lot of people are wondering what’s going on with the housing market as we head into the final stretch of the year. October always brings a mix of activity and uncertainty, so let’s dive into what I’m seeing and what you need to be aware of.

Price reductions are likely to spike. First off, let’s talk about price reductions. October has historically been a month where we see price reductions spike, and if you’ve been watching the market over the past few years, this probably sounds familiar. In 2022 and 2023, we saw noticeable increases around this time of year. If you’re in the market to buy, this could impact your mortgage rates. On the other hand, if you’re selling, you’ll want to keep an eye on how this affects buyer demand.

Seasonality and seller strategies. Now, here’s where seasonality comes into play. As the holidays approach, November and December tend to be slower months for real estate. If a home has been on the market for 30 or 60 days and hasn’t moved, sellers often get more aggressive with their pricing to close deals before the holiday slowdown. It’s not uncommon to see price reductions in late October. In fact, in 2023, about 19% of active listings dropped their prices compared to 17% in 2022. To give you some context, the average price reduction rate typically hovers around 10%, so these October drops are significant.

What does this mean for you? If you’re a seller, this is a crucial time to think about your pricing strategy. We haven’t seen a large wave of price reductions just yet, but we’re approaching that point. Some sellers may decide to drop their prices, hoping to secure a deal before the end of the year. This is why pricing your home correctly from the start is critical. You want to attract buyers without leaving money on the table. I’m seeing more buyer demand as interest rates slightly ease, but the activity isn’t overwhelming. Stability in pricing could be on the horizon, but it’s essential to play it smart.

If you’re considering selling your home in the next six months, now is the perfect time to start planning. If you need an expert to help you, you can call or text me at 206-940-4557. I’m happy to offer a free property evaluation, where we can discuss how much your home could sell for, how long it might take, and most importantly, what you’ll net in your pocket after the sale.