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Every home sells eventually. The asking price is simply an indicator of the seller's motivation.
Keep in mind most sellers are limited in the amount they can cut their price due to their equity position. This is a huge reason why the housing market will continue to slide. If you can't sell your property, you can't purchase the next one, and the cycle continues for everyone. All this while Billions worth of ARMs will be readjusting this year and foreclosures increase an already bloated inventory.
It's also a psychological reaction to the stock market and all the rosy economic news that people are hearing. If you watch the DOW and MSM you think things are looking up so as a seller you think you just have to wait and the market will come back to you. If/when the market drops again then sellers will start lowering their prices.
Another useless observation, the number of price reductions.
How about a headline “more sellers start out with realistic prices†?
I agree.
Most sellers have no choice and are holding on in hopes of getting close to what they paid for. Reaktors continue to lead them on and tell them they can sell their home for more than what the market dictates, in order to list the home with them. Then the home does not sell at that price. As more and more distressed properties ckeep coming on the marjet, this may be bad advice.
http://www.bizjournals.com/southflorida/stories/2010/01/11/daily10.html
"
Fewer people selling their homes cut their listing price in December, according to the latest numbers from San Francisco-based Trulia.com.
Nationwide, prices on 21 percent of homes on the market as of Jan. 1 were cut at least once, down from 22 percent in the previous month and down from 25.6 percent two months ago.
In South Florida, West Palm Beach had the highest percentage of homes with price reductions – 23 percent – followed by Miami, with 21 percent, and Fort Lauderdale, with 17 percent.
The average price reduction in West Palm Beach was 14 percent off the listing price, representing $26.1 million in price cuts.
The average price reduction in Miami was 15 percent, representing about $179 million in price cuts."
it goes on to say:
"Several cities have experienced a significant decrease in price reductions, including:
Jacksonville saw the highest percentage of listings with a price reduction, at 36 percent, followed by Portland, Ore., and Milwaukee (33 percent); and Omaha, Neb., and Seattle (32 percent); and Tucson, Ariz., and Charlotte, N.C. (30 percent)."
A realtor friend of mine (we were friends before she joined the dark side) told me yesterday that houses are flying off the shelf - short sales & foreclosures, including one in her neighborhood that sold for $100k less than she owes on her home that's quite a bit like hers. She said that the numbers sound so great, but the reality is that values continue to drop like a rock.Â
Certainly not news to Patnet readers.
#housing