Last September I commented on how I was glad I sold my house already. Things in my old neighborhood of Rancho San Pasqual have gotten worse.
Just one month ago there were 18 properties for sale. A few went into pending status, a few gave up and one more person put their home on the market. There are now 13 listings for sale heading into summer. Summer is a brutal time to sell a house in the heat of the San Pasqual Valley.
What happened to the prices of the 12 properties still active in the last 30 days?
Four properties had no price change and one home oddly raised their price $10,000 after being on the market over 100 days.
Some of these houses are going through death by a thousand cuts. Every month the agent comes back and is able to get the price lowered by $5K or $10K. Meanwhile the inventory swells and the value of the house drops by more than the price cut. The house fails to sell and the process is repeated again and again. The house with the $5K price cut in the list above has been on the market almost 250 days already.
When inventories are rising and sales are falling, you need to aggressively go for the sale. From My Advice on Selling Your House:
Price To Sell: You should have your house priced better than at least 90% of the homes in your area. Yeah we know you have upgraded counter-tops and a better view, but many buyers will not have the time to see every property to find that out. Price yourself higher than your neighbors and they won’t even look at your house. Also, you should force your neighbors to lower their house price as a result of your sale, not the other way around.
An irrational market took home prices too high. Don’t expect markets to behave rational on the downside. They won’t.
UPDATE: Barry Ritholtz posted a graphic in Housing Inventory Build Worsens, which shows the percentage of homes for sale that show a price reduction. The chart shows that 31.9% of San Diego listings have reduced their prices.
During the 11 months I had my house for sale, we would expire the listing and relist in order to hide price reductions on the MLS. My guess is quite a few agents are doing the same trick. I wonder what the true percentage of homes have reduced their price?
bwaaa haa haa. and my landlord (its a duplex) is pissed because the people across the street sold their place for only 10K more than he paid (865K) and has ruined the comps for the neighborhood.
and the two units for sale now — “entertaining offers” between 949,000 and 999,000 yeah. that’s entertaining all right. downright laughable!
these people are clueless.
and Glad you sold your house already too!!