Dear Friends & Neighbors,
If the market is still good, then why are we seeing so many price reductions??
Well this certainly is a good question, and I’m sure many of you have seen a lot of houses sitting out there that continue to do price reduction after price reduction. This is certainly not something we are used to seeing after the past several years. The market is, of course, changing, making it a more fair market for both Buyers and Sellers alike, but we think that a lot of these price reductions are not necessarily coming from our changing market, but more so from Sellers and agents over-pricing the property. 2019 is the first year in a long time that we couldn’t look at a sale from a year ago, add on almost 10% in some cases, and then have the property under contract with multiple offers in less than a week. Prices have really, for the most part, remained the same and stayed stable over the past year. So, when Sellers and agents look at past comparables, a lot of people are likely pricing the property higher than something that sold a year ago, and that is the mistake. Buyers right now are so price sensitive, that even if a property is just slightly over priced, it may be difficult to obtain any offer at all, and that is where we start to see the price reductions. But, since this really is still a good, strong market for Sellers, once the correct price is hit, multiple offers may even be seen 3 or 4 weeks into the process, which really is different than the norm, but a clear indication that Buyers are really driven by price right now. Contrary to the price reductions, we are still seeing the properties that are priced correctly and in desired locations sell in less than a week with multiple offers, and still, often over asking. Unfortunately, if you come out of the gates priced high and you have to do multiple price reductions, you will likely not get as much money in the long run as if you had started out more appropriately priced. This alone is good reason to hire an experienced agent who knows your neighborhood and the trends of the area well. Buyers, take advantage of the over-priced properties that are still sitting on the market, and don’t be afraid to make a lower offer. Sellers, as we have been saying, it is still a great time to sell, just be sure you are hiring an experienced, good agent, and we happen to know where you can find one! ; )