Home Prices Falling…Falling…Falling – September 16, 2010
September 16, 2010 by Mark Siwiec
Filed under Buying & Selling, Full Blog, Mark & the Market
We’ve talked about it before. We’ll probably talk about it again. Recently I read an article on CNBC.com that discussed the ever-growing trend of falling home prices. People knew that the expiration of the home buyer tax credit earlier this year, coupled with the increasing number of foreclosures, would almost certainly result in home prices taking a hit.
Prices have been in recovery mode since last fall, and for a short time, there seemed to be light at the end of the tunnel. The problem? It was artificial light. Prices were benefiting earlier this year due to a bump in confidence in the housing market that was largely due to the $8,000/$6,500 home buyer tax credit incentives. Additionally, for a short time it seemed as though the amount of foreclosures was in decline. Unfortunately that was also a bit misleading. Banks were merely delaying the process as they attempted to get as many borrowers as possible into what we now know was an unsuccessful government-backed mortgage modification program.
By and large, home buyer confidence is still struggling. And the number of homes for sale far exceeds the number of buyers looking. A report out recently showed that for the third straight month nationally, the percentage of sellers on the market who have reduced their asking prices at least once has increased. We’ve said it before…we’ll say it again. Buyers are looking for great houses and great deals. The houses that are selling are attractively priced, they are in attractive areas, and/or in near perfect condition.
In such a competitive landscape it is vital to price your home correctly. Having access to real estate experts such as Mark and his team to guide you through the process of listing your home in this marketplace, is such an asset that everyone should take advantage of.
I’m sitting here, as I write this, just perplexed! Everywhere, we’ve read, heard, seen, and so on, that home prices are falling and it’s totally a buyer’s market. Anything over $250K is sitting, sitting! Well, this theory does NOT apply to the three houses in which my fabulous buyers have recently been interested. First, one in Pittsford, listed at $324K sells in the first four days, then the next, on Country Club Dr. in Pittsford, listed in the $380Ks sells in the first week… Finally we find one in Pittsford listed at $309K that’s not sold yet (been on the market a whopping 10 days!), yay! Not so fast… We write an offer, only to find out a couple of hours later that there’s another offer, boo!! The market has definitely opened up, and so have buyers’ checkbooks! If a seller’s home is move-in ready condition, and somewhat recently updated, as a buyer, get ready to strap on your gloves as you may be in for a fight! I’ll let you know how it turns out…