A report from the New York Post. “The Long Island mansion from the 1986 flick ‘The Money Pit’ has become a real-life money pit. This Nassau County home has sold for $3.5 million after five years on the market. That’s 76 percent less than its original 2014 asking price of $12.5 million. Sellers Rich and Christina Makowsky invested $5.9 million in renovations after buying the North Shore spread for $2.12 million in 2002, according to Fox Business.”
The Pikes Peak Courier in Colorado. “According to an informal survey of six real-estate brokers, sales in Woodland Park average about five a month, with the median price holding steady from $350,000 to $360,000, a jump from the median range between $250,000 and $275,000 in 2014. And there are no fisticuffs around to signal bidding wars for homes; that’s pretty much in the past according to the six.”
“The market is in transition, with homes staying on the market longer. ‘In 2018, for instance, most homes sold for the listing price or above,’ said Michael Harper, independent broker. ‘My recommendation to the seller is to price the home correctly. You can’t expect to get away with pricing a home for more than it’s worth.’”
“Since 2016 housing prices have been appreciating about 30%, said Beth Gregory, a 15-year veteran of the business. ‘It’s been one of those crazy markets for the past couple of years.’ But the appreciation is not destined to last. ‘We’ve got sellers right now who are challenging to work with, because they got so used to housing prices jumping — we were seeing bidding wars in the spring and summer seasons, but those have ceased,’ she said.”
“Kellie Case and Connie Sims are part of the Agent Leadership Council for Keller Williams Clients’ Choice Realty who work in the Woodland Park office. Case saw a shift in demand for single-family homes beginning in July. ‘There are a few new listings every day and lots of price decreases, because 99% of what drives a home’s ability to sell is price,’ she said.”
“As far as demand does, homes in the $300,000 to $400,000 range are still selling quickly. ‘We’re still seeing some multiple offers, but not for everything,’ she said. ‘But homes from $500,000 to $700,000 didn’t go as we had thought. I priced them based on the previous six months of comparable sales, but the market didn’t tolerate it.’”
“Relatively new to real estate, Case acknowledges that she hasn’t been through previous recessions when the market collapsed. ‘I am preparing me and my business to weather a downturn because it’s really an opportunity, if you look at it, instead of being doom-and-gloom,’ she said.”
The Orange County Business Journal in California. “Aliso Viejo homebuilder New Home Co. is following through on its plan to focus on sales volume over price, shifting its home prices downward to capture growing demand for affordable housing. The developer and builder, among OC’s top sellers of higher-priced homes the past decade, is emphasizing ‘pace over price,’ said Leonard Miller, who took over from Larry Webb as chief executive in August.”
“‘Our more affordable projects continue to perform well relative to our move-up and luxury communities from both a sales pace and margin perspective,’ Miller said during the company’s quarterly conference call.”
From KXII in Texas. “Last month was the largest single month for home building in Sherman in more than three decades, and a local realtor said this growth is affecting the housing market. City officials say Sherman added 59 new houses in October. Owner and broker at Tracy Realty, Tommi Homuth said developers like Highland Homes, Cupid Homes, and Holley Jolly Developments are expanding housing options in the area. ‘We have more inventory on the market, prices are starting to come down, it’s a buyer’s market,’ Homuth said.”
From Arlington Now in Virginia. “A $999 reduction on a million-dollar home. Why should you care? It’s a question we get quite a bit here at the Just Reduced column. Sure, some of the reductions we see equate to a one percent savings off the list price… or even much less. These types of reductions may not seem that impressive, especially when we see prices on some listings drop by hundreds of thousands of dollars or upwards of 10 or even 25 percent.”
“But it’s important to keep this in mind: These reductions are only just the beginning. Some sellers reduce prices to appease to online searchers (e.g. a buyer with a budget of $1 million won’t find your $1,000,001 listed home in a search of properties under $1 million). Some have drastically overpriced their initial listings. And, in some instances, buyers have deadlines of their own to meet and just need to get moving.”
“The bottom line with reduced properties: Sellers are taking action. With a trusted team by your side, you can harness their activity/urgency and negotiate further.”