More realistic pricing is to take your home value in 2019 and appreciate the house based on the average rate of appreciation for your area (before covid). Sell at that price and your home will move quick. You’re not getting Covid prices (2021-2022), the market has changed: Inventory is up, mortgage rates will remain high (in comparison to 3% rates), free market is taking over. My long way of saying, drop the prices significantly is you want or need to sell.
Great update. I agree that we're starting to see more sellers come in at more "realistic" prices right out of the gate. I've been watching Maricopa (the City) for the last couple of years, because I consider it a perfect canary, and this new 300K listing - 45525 W Sky Ln, Maricopa, AZ 85139 - would have started very close to 400K at the Covid bubble peak (mid 2022).
Prices WILL Fall. It's just a very slow process due to so many with low payments and massive equity. Opposite of 2006, high loan payments and little equity.
It's not only that though, the government and the banks have been moving mountains, at (indirect) taxpayer expense, to keep foreclosures off the market. It has definitely kept the price declines at bay, but I don't think the dam can hold forever. There is already noticeable price slippage in many of the places I track (but amazingly not all).
@rick - in the Cromford Report, does the data show an inverse correlation between sales prices and days on market? I'm curious if there's ACTUAL data suggesting it's better to de-list during shoulder season and re-list during the buying season, versus keeping the listing going until the property sells. I hear a lot of anecdotal evidence from realtors suggesting it's better to delist so a listing doesn't go 'stale' but that strategy has never really made sense to me. I can't think of another market where you would delist a product in an effort to better time the perceived buying season? Anyhow, another great show ... would welcome your thoughts on this topic if you have the time to respond. Thank you.
That is a hard data point to complile on my end. Holiday sales are a roll of the dice. fewer buyers but the buyers that are out there are serious. Taking the home on the market will not reset the days on market clock but simply keep it from growing. Re listing on January means putting it back on when more like minded sellers are doing the same thing.
@@Eric-bq1jo It is hard to tell. They have been doing some year end close out incentives this quarter. It will continue to be rate driven looking forward.
My North Scottsdale home is 108 days on the market, after a 100K price drop. We made the mistake of putting $300 K in housing upgrades when we first purchased our home in 2020. We purchased our home for $600K. Asking $750K. Every buyer who visits wants a perfect home like ours but wants to purchase the property at 2020 prices. Not current market value. and our home is priced WAY below the comps and market value. I am done. We will place our N. Scottsdale home on the rental market. No mortgage, so only positive cash flow. I'm selling due to job relocation in Washington state. Will rent in Washington State for? how long. Evidently, Washington State is dealing with the same housing problem.
@@rivakhoffman4825 That price range is very rate sensitive. I agree that buyers want homes to be perfect. Not realistic in my opinion. Good luck in my home state.
@@douglasgilbert486 We are priced $150K below the same floor plans on the market in our community. However, they have all been listed for over 155 days.
More realistic pricing is to take your home value in 2019 and appreciate the house based on the average rate of appreciation for your area (before covid). Sell at that price and your home will move quick. You’re not getting Covid prices (2021-2022), the market has changed: Inventory is up, mortgage rates will remain high (in comparison to 3% rates), free market is taking over. My long way of saying, drop the prices significantly is you want or need to sell.
depends on the price point.
Great update. I agree that we're starting to see more sellers come in at more "realistic" prices right out of the gate. I've been watching Maricopa (the City) for the last couple of years, because I consider it a perfect canary, and this new 300K listing - 45525 W Sky Ln, Maricopa, AZ 85139 - would have started very close to 400K at the Covid bubble peak (mid 2022).
Prices WILL Fall. It's just a very slow process due to so many with low payments and massive equity. Opposite of 2006, high loan payments and little equity.
@@RealLifeFinance I agree.
It's not only that though, the government and the banks have been moving mountains, at (indirect) taxpayer expense, to keep foreclosures off the market. It has definitely kept the price declines at bay, but I don't think the dam can hold forever. There is already noticeable price slippage in many of the places I track (but amazingly not all).
@rick - in the Cromford Report, does the data show an inverse correlation between sales prices and days on market? I'm curious if there's ACTUAL data suggesting it's better to de-list during shoulder season and re-list during the buying season, versus keeping the listing going until the property sells. I hear a lot of anecdotal evidence from realtors suggesting it's better to delist so a listing doesn't go 'stale' but that strategy has never really made sense to me. I can't think of another market where you would delist a product in an effort to better time the perceived buying season? Anyhow, another great show ... would welcome your thoughts on this topic if you have the time to respond. Thank you.
That is a hard data point to complile on my end. Holiday sales are a roll of the dice. fewer buyers but the buyers that are out there are serious. Taking the home on the market will not reset the days on market clock but simply keep it from growing. Re listing on January means putting it back on when more like minded sellers are doing the same thing.
Great channel! What is your opinion on prices for new builds going down in the next 6 to 12 months?
@@Eric-bq1jo It is hard to tell. They have been doing some year end close out incentives this quarter. It will continue to be rate driven looking forward.
Its much worse than what's being inferred
Not sure about inferred. But we are seeing a very soft Q4 trend except in the $1.5 to $2.5 range
My North Scottsdale home is 108 days on the market, after a 100K price drop. We made the mistake of putting $300 K in housing upgrades when we first purchased our home in 2020. We purchased our home for $600K. Asking $750K. Every buyer who visits wants a perfect home like ours but wants to purchase the property at 2020 prices. Not current market value. and our home is priced WAY below the comps and market value. I am done. We will place our N. Scottsdale home on the rental market. No mortgage, so only positive cash flow. I'm selling due to job relocation in Washington state. Will rent in Washington State for? how long. Evidently, Washington State is dealing with the same housing problem.
@@rivakhoffman4825 That price range is very rate sensitive. I agree that buyers want homes to be perfect. Not realistic in my opinion. Good luck in my home state.
108 days on market, no movement? You are overpriced.
@@douglasgilbert486 We are priced $150K below the same floor plans on the market in our community. However, they have all been listed for over 155 days.
Rick, these google meets you do. How much do you charge for those? I would like to get your thoughts on a few things.
@@sebastiang7183 no charge at all
In a sellers' market, it makes sense to list your house a little low, to trigger a bidding war. It worked for me last year.
Just pulled my house off the market
@@matthewbrown4684 Thanks for that info. Putting it back in in January?
To try again in the Spring? Like all the people who pulled their listings in late 2023 and all of 2024?
why?