Thursday, November 8, 2018

PRICE INCREASES SLOW AMID SURGE IN INVENTORY

MARKET ADJUSTMENT $$$$$$$ DOWNWARD???
All news reports and agents are noticing our "adjustment" in the market.  Headline in the SF Chronicle the other day said "Rise in home prices slows amid big surge in inventory".  And it's not just in the Bay Area.  It's here in Sacramento too.  We started seeing it a couple of months ago but now it has become obvious to not only agents, but buyers and sellers alike.  You can't pick up a newspaper without seeing a headline (however small) stating the real estate market is cooling down a bit.  Even San Francisco is seeing their average selling price drop to under $1M..... there is, however,  a gap between sellers who are trying to extrapolate out what they have seen in the past three or our years in price increases ..... and buyers who now have more options and inventory to choose from".......exact words from the business write for the SF Chronicle yesterday.

The challenge we Realtors are facing today though,  is convincing sellers who really want to sell, to make that price adjustment now in order to reap maximum profit as opposed to holding on to what they "think" their property is worth,  and ending up getting less in the long run.  You really have to rely on your Realtor's expertise when they advise a price reduction if your property has been on the market a month or so  (or even just a few weeks).....because we're watching MLS and the market every single day and are watching the inventory grow.  Sellers have more competition and buyers have more homes to choose from.  Besides sellers being realistic about their price, they also have to be the home that shows the best!  For sellers who aren't convinced,  they should ask their Realtor to show them other homes they are "competing" against.  Sometimes that's an eye-opener.  The adage has always been and will remain,  price it right to begin with and you'll end up getting more money in the long run than you would if you try to "outsmart" the market and believe you can "always come down" on your price.  After 40 years listing and selling homes,  I can absolutely say with certainty that it doesn't work that way.  Once you've been on the market a while at an unrealistic price, and you reduce it and reduce it,  buyers for some reason (even if that isn't true)  think there must be something wrong with the house.  When indeed, there probably is not.  It was just a mistake to start too high.

* Thinking of selling and want to price it right and get it SOLD?  Email me for a free market analysis of your property...or I'll be happy to try to answer any of your real estate questions!  pmartinez@golyon.com   or PATTIMARTINEZ.NET