For those who sense a changing market, here is some evidence to support your case – from Zillow (click for full image):
You can probably figure some seasonality into the ‘Listings with Price Cut’, but as the frenzy started building you can see how the need for sellers to lower their price diminished.
Now the percentage has doubled in the last 6 months:
Or could more sellers be reading bubbleinfo.com?
I notice some big two stories lingering on the market around me. I think people are starting to factor in AC and heating bills into their thought process nowadays. Electric rates keep going up and in the summer these homes can cost 500/ month to cool.
There was a 1 story near me that came onto the market and sold the first week @ 10k over list price. They had done some typical flipper work and even staged it.
Its also a slower time of year. I was getting more flyers on my door about the market this year for sure. More realtors seem to be back in the game.
Seems like the best advertising dollars would be on the internet? You want your mug to show up when someone is searching for a home.
I’ve even seen some people advertising on craigslist as a FSBO an offering a 2.5% buyers commission.
Two stories can actually save on utilities if you do not insist on cooling upstairs during the day (when most likely you are spending 90% of your time downstairs), we’re taking two zone AC here.
One story the roof is always in the sun.
I would be willing to bet you will see more and more price reductions going forward across the board in all price ranges. I live down here in the central valley and I see more listings with: Price Reduced, Motivated Sellers, Bring All Offers, Must Sell, etc. everyday. This seems to be a trend when reviewing the properties listed for sale here in my area. The market has slowed down, but some sellers have not adjusted to the new market place.
Yes, we will see many more.
But let’s be clear – the market is not falling apart, it’s that sellers got too far out in front of the frenzy, pushing their list prices way too high – and effectively killed it off. Now it’s time to retreat to market value.
Where that is exactly nobody knows – but check back in six months!