“Price reduced” signs are only relevant if you assume the initial listing prices were reasonable to begin with. Realty agents are sometimes forced to list properties at unreasonable prices as a condition of obtaining the listing, and then they have to wait for their sellers to get serious enough about selling to consider more reasonable pricing.
I pretty much ignore price reductions in a listing just as I ignore active listings as value indicators. Most of the time the only thing an active listing is good for is in establishing an upper limit of value. In a declining market that means that at least some list prices will be below some of the more dated closed sale prices.
