The real estate market is shifting. Here are highlights from a recent Wall Street article:
Home Sellers Cut Prices as Housing Market Cools
There are a lot of unhappy people in the housing market right now. Among the most miserable are sellers realizing they have listed their properties too late.
For much of the country, real estate had been on a tear since the start of the pandemic. Home prices are up about 44% over the past two years, according to Redfin. But prices have cooled lately and many homeowners are coming to grips with the reality that they may not get the same price their neighbors did. Roughly one in seven homes on the market had a price reduction in June, according to Realtor.com. That is nearly double the rate of one in 13 homes a year ago.
Jennie Jackson, 33 years old, listed her three-bedroom Las Vegas home for $465, 000 earlier this summer. In March, her neighbor sold a comparable home for about $485,000, she said. Over the course of about 35 days, she cut the price three times . She recently accepted an offer for about $405,000.
“I thought this might be the highest offer I’ll get so let me get out while the going is good,” said Ms. Jackson.
Homes that have been on the market for three months or longer are reducing prices by around 11% from the list price, according to the National Association of Realtors.
With rates pushing the monthly mortgage payment for a typical home 60% higher than a year ago, many buyers are unable to come up with the funds to purchase a home. As a result, sales of previously owned homes fell for a fifth straight month, dropping 5.4% in June to an annualized rate of 5.12 million, according to NAR.
If you have a home for sale, are open to Owner Carry, and come across one of these frustrated buyers – who is otherwise well qualified – it may be time to get creative. Here is just 1 idea: Get the comparable prices in your neighborhood for recent sales. Cut 10% off the market price for your home up front. Show all this to your potential buyer, now negotiate something in return that makes a strong transaction for both of you.
Get creative!
