Market News

Today, many sellers are unknowingly contributing to the loss of value of their own houses on the market. This happens when sellers hold on to the emotional ties of their asking price which oftentimes is unrealistically high. Current market buyers have done their homework and know when to take action on a property that is priced right. When sellers are unsuccessful in getting their house sold because of price, they are also contributing to the continuation of a downward price spiral. Here's why: Real estate is a commodity in the marketplace. When there is an oversupply of inventory, prices go down. When sellers price their house over what knowledgeable buyers know is the reasonable current market price, the property stays on the market continuing the oversupply. In today's market, sellers who understand that real estate is a commodity have priced correctly and are seeing the result as closed sales in days/weeks while those priced above the market, linger for months and some for years. If more sellers would recognize the economic basics of supply vs. demand and position their properties at prices to motivate the pool of buyers to action, the supply of houses on the market would decrease more rapidly creating a lower supply of inventory eventually resulting in price increases. Smart buyers are looking for properties positioned correctly and are taking action. Smart sellers should enlist the services of an agent who understands how the market is working today. This will help the seller to know when to accept a reasonable offer even it is not what they hoped for originally (emotional price). To see what is happening in your county, check out the current activity graphs included here. If you are a potential seller, buyer or just curious, I am available to give you an understanding of what's working in the market of your area.