It seems to me sellers are finally coming to terms with the market that we are in. It took some time—almost two years. However more and more we are seeing new houses come on the market that are “priced right” or easily 25 to 30% lower than they would have been a few years ago. And you are also seeing some of the more stubborn listings that have been languishing, now with major price reductions and a few getting deals on them.
Back in 2010 I had a deal on a 1940’s Dutch colonial on 23 acres. We got an accepted offer, however the inspection uncovered things that spooked the buyers. They asked for a 10K allowance. The sellers said go pound salt. Twenty-six months later, it has finally gone into pending on the MLS. They had dropped the price 30K less than they would have walked with had they agreed to the inspection allowance. It will be interesting to see what the final price is.
There is another modular ranch that I had an offer on last summer. Seller responded via the listing agent, that they were “insulted” by the offer. It just sold for 10K less than the initial insulting offer.
I suppose it is the final step in the five stages of grief—acceptance. We had the denial, the anger and the bargaining. Now we have a collective national sigh.
But have you noticed the number of articles being written about when housing prices will start to recover and “real’ appreciation will start to kick in? It seems everywhere I turn someone is trying to “TALK” the housing market up. Have you been reading the same things?
Why… to get to those highs would mean that the economy would have to produce over 8 million new jobs (just to reclaim all those who lost their jobs) and then it would have to grow so that incomes increase to the point where higher priced homes could be afforded.
Remember, one of the contributing factors to the downturn was that home prices had outstripped the ability of buyers to afford them. That had become painfully obvious the last year of the bubble, where buyers simply could not afford the asking prices of even the most modest homes here in Sullivan County. And at last when every “creative finance” option had been exhausted—the house of cards collapsed. Just like I doubt we will see the Nasdaq at 5K again, the three bedroom ranch on one acre in Sullivan County will not be worth 225K again anytime soon.