We are hearing from Sellers, “If I reduce my price, will buyers think negatively about my house or think I’m desperate?”
No buyers will not think negatively of you and honestly, if you are serious about selling, you will want to pay attention to the market indicators or feedback that encourage you to be “in the market” versus priced “out of the market”.
- In the past week, there have been 2938 price reductions in the DFW area. We discussed last week that we are at a 3.67 month’s supply of inventory and that the higher priced homes are going up in inventory faster than lower priced homes.
- Home prices rose 5% YTD versus pervious years where we were looking at a higher pace.
- If you look at the average Days on Market below, August Days on Market rose, and we expect September to do the same for homes priced over $400,000. (see chart below)
- Think of the market like surfing a wave. (In full disclosure I have only ever successfully surfed a wave 3 times, and it was magical.) When I was behind the wave, I fell off. When my board was too far over the wave, I fell off. But when my board was just behind the tip of the perfect wave, I rode it successfully into shore. The market is the same thing, you need to be in alignment with what buyers are willing to pay and what your competition is doing to successfully get you sold, without giving away the price.
And you know what? That’s ok, we’re moving towards a more balanced market and our housing market is still incredibly strong. If we find that we’re priced higher than the market allows, it’s just important to listen to the feedback we work so hard to get, pay attention to the competition (aka your neighbors) and make adjustments that meet your priorities and timing.