Shocker: The Average Size of a Price Drop is 10.7%

Just before going home on Friday night, Redfin’s Jeff Yee just ran a query against all the active listings in our entire database, which includes listings from brokers, banks and owners selling their own home in Seattle , San Francisco , San Jose , Los Angeles , Orange County, San Diego , Chicago , Boston and Washington, D.C. areas (see links for local statistics on price reductions). What he found: 38% of currently active listings have undergone a price reduction at some point since going on the market. But it was the average magnitude of the drop from the original list price that shocked everyone here: 10.7%. The data-set hasn’t been scrubbed for outliers, and it doesn’t account for price drops where the seller pulled his listing from the market and quickly re-listed at a different price