The median home price in San Diego County has now dropped five months in a row to $775,000 — a reduction of $75,000 since since May. That means for-sale homes are sitting longer and, in the last two months, 42 percent have had their price reduced at least once.

Sometimes, the price reductions can be substantial: Nearly a quarter — 24 percent— of sold homes in October had a price reduction of 5 percent or more.

The market has changed and it appears buyers aren’t willing to settle for anything they can get their hands on — like they did at the start of the year. Increased interest rates have made buying a property more difficult for many potential buyers, so it’s not like there is a lot of wiggle room on prices.

Sellers throwing a price out there to test the market has not been a wise strategy. The most interest in a property tends to be in the first few weeks, so trying for a higher price can sometimes make for a big headache for sellers and real estate agents as the weeks and months drag on.

ZIP codes with the most price reductions
An analysis of price reductions over the last 30 days found several ZIP codes that stand out. This list contains all home types, such as single-family, condos and townhouses.

• 92057: This Oceanside ZIP code has had 13 price reductions in the last 30 days, the most of any in San Diego County. An example would be 4733 Point Malaga Place, a four-bedroom single-family house that went on the market for $1.29 million in mid-October but is now listed for $1 million.
  
• 92026: This Escondido ZIP had 11 reductions.
  
• 92122: This University City ZIP also had 11 reductions. An example is 6182 Agee St., No. 194, a two-bedroom condo that went on the market in mid-October for $640,000 but is now listed for $585,000.
  
• 92029: This Escondido ZIP had 10 reductions. An example includes 1933 Bedford Place, a five-bedroom single-family home that went on the market for $1.79 million in July but is now listed for $1.5 million.
  

Other ZIP codes with eight or more reductions include 92078 (San Marcos), 91977 (Spring Valley), 92009 (Carlsbad) and 92021 (El Cajon).

Price reductions only tell one part of the story, as many homes never have a reduction but end up selling for less after an offer comes in under the asking price. Yet finding homes that have been sitting on the market for a while sometimes gives potential buyers an advantage in negotiations.

Source: SDuniontribune by Phillip Molnar