Monday, 3 August

A Third Of StreetEasy's New York City Listings Had Price Cuts In June, But The Tactic Isn't Working

A third of the active New York City sales listings on StreetEasy received price cuts as of mid-June, according to a new report from the site, but the discounts probably won’t yield more buyers, experts say.

Price cuts are a growing trend as the market struggles to cope with the slow-end of a cycle. The number of homes on StreetEasy with reductions rose from 20% in 2014 to 32% in 2018, according to its data. Sellers chopped a record $3.2 billion from the asking prices of all homes on the site in 2018, equaling roughly 10% of their total value.

However, while the strategy is meant to attract fresh attention like last season’s trends on the sales rack, they more often imply weakness for the seller, according to StreetEasy. Of all the homes sold through StreetEasy that received price reductions between 2014 and 2018, four out of five closed for lower than their final ask, the site reported. In other words, 80% of sellers accepted an offer that was lower than their discounted value.

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