9 ms·

More Than One in Four Home-Sellers Dropped Their Price Last Month

109 points by kimsk112 8y ago

Xcelerate 8y ago
I bought a house this past March right before accepting an out-of-the-blue job offer across the country, so I need to sell the house. This Redfin news worries me (although I'm happy for the buyers!) For anyone who has been through the process of selling a house right at the start of a market turn — what advice would you give? It seems like I need to get rid of the house ASAP, but are there any other important steps that I might miss?
- jaggederest 8y ago
  Go about 25% lower than you think. It'll sell reasonably quickly. I had to take about $100k haircut, but that's a coastal market for you.
- twblalock 8y ago
  Are you sure you need to sell it? Could you rent it out? There is pretty much no way you won't lose money unless the house went up in value a huge amount since you bought it -- enough to cover all of the costs you incurred when buying it and when selling it. On the other hand, you might be able to cover a large portion of the mortgage payments by renting it out, depending on the rental market in the area.
  - gwbas1c 8y ago
    > There is pretty much no way you won't lose money Are you crazy? An absentee landlord can't keep close tabs on the property. It can be trashed, or the tenant can stop paying rent. I didn't rent my old house out for that exact reason.
    - BigJono 8y ago
      Isn't that what a real estate agent is for? Half the places I've rented the past 5 years have been owned by some random bloke in China...
    - cobbzilla 8y ago
      No need to be absentee landlord, a good property manager will handle everything for 8-10% of the monthly rental income.
    - twblalock 8y ago
      I know plenty of people who rent out houses in other states. It’s not crazy at all. They have good property managers and good insurance.
- jackcosgrove 8y ago
  Look at "flat fee listing" services. You can save at least 3% (seller's agent commission) and up to 6% by avoiding realtors. These services will charge a flat fee to list your house on the major online portals, but you're on the hook for showing it. You'll still need a lawyer. Not really an ASAP solution, but you can save tens of thousands of dollars this way. Also, don't sweat a price drop as long as the market you're moving to doesn't lag the market you're in. You might lose money when selling, but if the other market is stalling too you'll pay less and it could be a wash. Timing a market slowdown such that you sell before a drop and buy after a drop is nearly impossible with a primary residence.
  - Xcelerate 8y ago
    Interesting. I'll take a look at flat fee listing services. I hadn't heard of those before. Unfortunately, I moved from semi-rural countryside to the Bay Area. I won't be buying a house here any time soon haha
derekp7 8y ago
Isn't this a side affect of rising interest rates? Two years ago (when I bought my current house) I got about 3.25% interest. Which means a 200K mortgage is $870/mth. With 5%, the mortgage would have to drop to 162K to have the same monthly payments -- almost a 40K drop in house price (about 16%, assuming the mortgage makes up 80% of the home price).
- ataturk 8y ago
  I don't really believe anyone cares. It's Fall, people drop prices to sell before the holiday season. It could just be a normal thing that happens every year just like fewer houses sell in December because of Christmas. People don't move after Labor Day if they have school-age kids because it's so hectic once school starts. There is just normal stuff that goes on that is not any kind of indicator of impending doom. I am sitting on a $100K down payment awaiting a market correction, but I won't wait forever. It's hard to just have that money in brokered CDs, but that's where it is for now. 2008 was the big correction, it could be 20 years before we get another one.
- jackcosgrove 8y ago
  In theory, yes. In practice, no. https://www.calculatedriskblog.com/2013/06/house-prices-and-mortgage-rates.html https://www.calculatedriskblog.com/2013/06/house-prices-and-... "There’s no strong correlation between interest rates and home prices,” said Douglas Duncan, chief economist at Fannie Mae.
  - YZF 8y ago
    I would say looking at those graphs that the interest rates going down from ~1982 look pretty correlated to the real house prices going up till ~2008. Especially for the post 1999 or so period. Then we had the bubble, then we had a crisis from a slight raise of rates. House prices move really slowly. You also probably want to look at real rates rather than nominal rates, for some of the period rates were high because inflation was also high. If interest rates keep heading up it's a good bet we're setting up for a repeat of that last crisis. Let's hope the banks are better prepared and have loaned money to less questionable people. It would also be instructive to see the shorter term rates, not everyone finances for 30 years. So I would say in theory and in practice interest rates have major impact on house prices. We would not have the bubble without the low interest rates as people wouldn't not be able to finance the purchase of those houses at those prices.
olivermarks 8y ago
https://www.ft.com/content/91122596-c8c0-11e8-ba8f-ee390057b8c9 https://www.ft.com/content/91122596-c8c0-11e8-ba8f-ee390057b... Rana Foroohar Dark clouds gather over the US housing market
- MoBattah 8y ago
  pay wall
Twirrim 8y ago
I've noticed several houses over the last month or so that haven't sold anywhere near as fast as expected. Around here (Greater Seattle area), houses have been selling in a matter of days: On the market by Wednesday, open house at the weekend, offer accepted on the Monday. If there had been just one house not selling that fast I'd have assumed overpriced, or something noticeably wrong with them, but even the new builds are struggling to sell at a price that would have been market competitive back in July / August.
- girzel 8y ago
  My brother put his (Seattle) house on the market about a month too late. What he was expecting to move in days took two months, and at a significant reduction in price. Something definitely changed around mid/late-summer.
- Qworg 8y ago
  The current chill with China is one of the rumored causes - less investment money coming to the US.
- donavanm 8y ago
  Check out https://seattlebubble.com https://seattlebubble.com. Numbers started changing in May, was “obvious” in sept. Average time on market is up to about two weeks. Was single digit days back in Q2. I still see in demand property going same day. Inventory is up, sales flat to down, prices mostly flat. Way beyond seasonal demand changes. Will be curious to see what happens in Q1/Q2.
  - conanbatt 8y ago
    >. Average time on market is up to about two weeks. Still insane.
wishinghand 8y ago
I've been bookmarking a lot of homes on Zillow lately within the app and I get almost weekly emails about prices drops. This is in the San Diego, CA area.
cbanek 8y ago
What is with the repetitive part of the graph that almost looks like a heartbeat? It looks like some kind of yearly cycle where around the holidays the prices don't move so much (probably because everyone's on holiday). It is a bit higher than the last few peaks, but not by that much. I think people also have been raising their expectations of what they will get recently. I have been watching Zillow price drops well for Tucson, where I've been looking to buy, and waiting for things to hopefully cool off.
- ac29 8y ago
  "Annual January troughs are due to more homes coming on the market after the first of the year"
- jackcosgrove 8y ago
  Helpful hint: Thanksgiving day is the best day of the year to buy a home (offer accepted) in the US, provided you like what's on offer. It's the slow season but there's less inventory.
  - village-idiot 8y ago
    I always switched apartments in winter for that exact same reason.
rch 8y ago
This is true even in Boulder, which mostly endured the 2008 downturn. I'm curious to see how it works out.
- partiallypro 8y ago
  We'll likely never see a housing crisis quite like 2008, at least not a for a while, but many cities really have overshot reality. I'm in Nashville and it's absolutely insane what people are asking for houses in bad neighborhoods or houses in good neighborhoods. It might not be a lot if you're moving here from California, but if you're from the region even Atlanta or Charlotte, you're getting a bad deal. Condos last I checked were cheaper in Charlotte and Atlanta in good neighborhoods than Nashville. Even in surrounding cities it has greatly outpaced rationality. Homes in East Nashville are up almost 300% in 8 years. That's not normal.
  - wil421 8y ago
    Do Airbnb and Vacation homes push prices higher in Nashville? Planning a trip to Nashville and there are a lot of Airbnbs available. I’ve known a few people with rental or vacation condos in Nashville. I’m in Atlanta and it’s nice to see prices cooling off. Especially since I want to buy soon. A lot of lisitings look like the sellers are way too high especially in hot areas.
    - rashomon 8y ago
      They absolutely do like tourist-heavy cities like Barcelona or London but a temporary drop in a white-hot housing market isn't a good sign to buy. Houses are still ludicrously expensive.
  - dangus 8y ago
    Nashville is one of the fastest growing cities in the US, along with being small to begin with, which should make it an outlier, yes?
romed 8y ago
It is interesting but be aware that expressing these figures as a fraction of listings necessarily biases the result to weak markets, where the properties are on the market longer and the inventories are greater. In "strong" markets (according to the point of view of a realtor; dysfunctional markets to everyone else) such as San Francisco inventory is currently near record lows with only about half as many listings as we had in 2010.
jldugger 8y ago
What a strange metric. It's not 'prices are falling' even though doomsayers really want it to say that. IMO what it mostly says is 'Sellers have been posting really high numbers and slowly walking them back.' Which is effectively a time-based auction, so it's not a completely irrational price discovery model.
- nerdponx 8y ago
  That sounds to me like the market is plateauing.
  - partiallypro 8y ago
    JP Morgan just laid off a ton of Mortgage brokers fwiw.
    - latchkey 8y ago
      Source: http://archive.is/3psee http://archive.is/3psee
  - jldugger 8y ago
    Look at the chart -- its an ongoing trend. Why does this particular moment indicate the start of a plateau?
- claydavisss 8y ago
  Sellers have been greedy...but reductions send a pretty clear message to buyers: wait, and there will be more
  - eksemplar 8y ago
    Sellers will always be greedy, the problem arise when buyers and lenders take risks. In Denmark housing is way higher than it was before the crisis, but wages aren’t really up. The market has now reached the point where the middle class can’t afford to buy a home near our biggest cities. Of course it’s going to end poorly. Especially with the aging population. If we didn’t own an appartment in the central part of time that was bought at 30% lower than the current prices I’d honestly be shitting bricks.
kosei 8y ago
Article seems so click-baity. Last year, more than 1 in 4 home sellers dropped their price, according to the included chart, but the market was hotter than ever.
ChuckMcM 8y ago
In California this has become noticeable to even the casual watcher of real estate. Per my earlier comment about people who are speculating and trying to 'flip' houses, I'm seeing pretty rapid price rollbacks on houses that were previously sold < 18 months ago. My speculation is that these people are trying to unwind their position because the market is softening and they don't want all their capital tied up waiting for the rebound. The combination of higher interest rates and tax code changes which limit mortgage interest deductions[1]. While $750K seems like a pretty high cap for limits to kick in, in the Santa Clara county, the median house price is over $1.3M so that is over $500K of mortgage interest you can't deduct. That changes the calculus of buying an expensive house and I would not be surprised if that is reducing the number of buyers. [1] https://www.marketwatch.com/story/what-the-new-tax-law-will-do-to-your-mortgage-interest-deduction-2018-02-09 https://www.marketwatch.com/story/what-the-new-tax-law-will-...
- anonymous5133 8y ago
  I have a friend who works as a realtor and she says that the market is definitely starting to cool off. There are less "mid-range" buyers and more low-end buyers because the prices have risen too much and interest rates are reducing the amount people can borrow. End result is previously a buyer was a mid-range buyers but now they are low-end buyer because the bank is not willing to lend as much anymore. Also there is data from CAR which shows both sales price and sales rate is declining. Inventory should start to build up going forward as home sit on the market longer. https://www.car.org/en/marketdata/data/countysalesactivity https://www.car.org/en/marketdata/data/countysalesactivity
CogitoCogito 8y ago
From the article: > We define a price drop as a listing price reduction of more than 1 percent and less than 50 percent. I would like to see the number of houses that increased their listing prices by more than 1% for a clearer picture. Without that information, I don't see how this graph leads to the conclusion of a general price drop.
- bmm6o 8y ago
  Does that ever happen? As a casual observer, I don't think I've ever seen it. When would a seller raise the asking price of a house already on the market?
  - CogitoCogito 8y ago
    I don't know how often it happens. That was my question after all. Judging by the downvotes I received, I guess people here either know (or assume) that asking prices don't rise. Unfortunately their downvotes aren't as educational as the statistics I was asking for.
masonic 8y ago
I wonder about the data legitimacy on these sites. I looked my place up on Zillow a few weeks ago, and it said $1.5 million. There's been only 1 sale here in the past 2 years, artificially low at $950K. A neighbor's just sold for $1.32M. Meanwhile, Redfin has mine at $1.04M. Zillow has my original purchase price at about 45% of what it actually was (and publicly recorded at). WTF?
- jedberg 8y ago
  My family who invests in single family homes said that Redfin is far more accurate than Zillow. In other words, he usually ends up paying close to the Redfin estimate.
wstuartcl 8y ago
Would also like to see this data against initial price charts -- my gut is that the market is over pricing on the initial price point and pulling back as the pricing was too optimistic. May just be a sign that people in the market assume their sales could be much more profitable than reality allows. TLDR: Sellers are trying to squeak out higher prices than in the past and the market is not accommodating the maneuver, or it is a tactic where an initial over inflated price + reduction is a ploy to dangle the properties at the true-wanted initial price.
socalnate1 8y ago
If you are interested in some really good data on the San Diego area housing market: https://www.piggington.com/september_2018_housing_data_slowdown_here https://www.piggington.com/september_2018_housing_data_slowd...

109 points by kimsk112 8y ago

I bought a house this past March right before accepting an out-of-the-blue job offer across the country, so I need to sell the house. This Redfin news worries me (although I'm happy for the buyers!) For anyone who has been through the process of selling a house right at the start of a market turn — what advice would you give? It seems like I need to get rid of the house ASAP, but are there any other important steps that I might miss?

jaggederest 8y ago
Go about 25% lower than you think. It'll sell reasonably quickly. I had to take about $100k haircut, but that's a coastal market for you.
twblalock 8y ago
Are you sure you need to sell it? Could you rent it out? There is pretty much no way you won't lose money unless the house went up in value a huge amount since you bought it -- enough to cover all of the costs you incurred when buying it and when selling it. On the other hand, you might be able to cover a large portion of the mortgage payments by renting it out, depending on the rental market in the area.
- gwbas1c 8y ago
  > There is pretty much no way you won't lose money Are you crazy? An absentee landlord can't keep close tabs on the property. It can be trashed, or the tenant can stop paying rent. I didn't rent my old house out for that exact reason.
  - BigJono 8y ago
    Isn't that what a real estate agent is for? Half the places I've rented the past 5 years have been owned by some random bloke in China...
  - cobbzilla 8y ago
    No need to be absentee landlord, a good property manager will handle everything for 8-10% of the monthly rental income.
  - twblalock 8y ago
    I know plenty of people who rent out houses in other states. It’s not crazy at all. They have good property managers and good insurance.
jackcosgrove 8y ago
Look at "flat fee listing" services. You can save at least 3% (seller's agent commission) and up to 6% by avoiding realtors. These services will charge a flat fee to list your house on the major online portals, but you're on the hook for showing it. You'll still need a lawyer. Not really an ASAP solution, but you can save tens of thousands of dollars this way. Also, don't sweat a price drop as long as the market you're moving to doesn't lag the market you're in. You might lose money when selling, but if the other market is stalling too you'll pay less and it could be a wash. Timing a market slowdown such that you sell before a drop and buy after a drop is nearly impossible with a primary residence.
- Xcelerate 8y ago
  Interesting. I'll take a look at flat fee listing services. I hadn't heard of those before. Unfortunately, I moved from semi-rural countryside to the Bay Area. I won't be buying a house here any time soon haha

derekp7 8y ago

Isn't this a side affect of rising interest rates? Two years ago (when I bought my current house) I got about 3.25% interest. Which means a 200K mortgage is $870/mth. With 5%, the mortgage would have to drop to 162K to have the same monthly payments -- almost a 40K drop in house price (about 16%, assuming the mortgage makes up 80% of the home price).

ataturk 8y ago
I don't really believe anyone cares. It's Fall, people drop prices to sell before the holiday season. It could just be a normal thing that happens every year just like fewer houses sell in December because of Christmas. People don't move after Labor Day if they have school-age kids because it's so hectic once school starts. There is just normal stuff that goes on that is not any kind of indicator of impending doom. I am sitting on a $100K down payment awaiting a market correction, but I won't wait forever. It's hard to just have that money in brokered CDs, but that's where it is for now. 2008 was the big correction, it could be 20 years before we get another one.
jackcosgrove 8y ago
In theory, yes. In practice, no. https://www.calculatedriskblog.com/2013/06/house-prices-and-mortgage-rates.html https://www.calculatedriskblog.com/2013/06/house-prices-and-... "There’s no strong correlation between interest rates and home prices,” said Douglas Duncan, chief economist at Fannie Mae.
- YZF 8y ago
  I would say looking at those graphs that the interest rates going down from ~1982 look pretty correlated to the real house prices going up till ~2008. Especially for the post 1999 or so period. Then we had the bubble, then we had a crisis from a slight raise of rates. House prices move really slowly. You also probably want to look at real rates rather than nominal rates, for some of the period rates were high because inflation was also high. If interest rates keep heading up it's a good bet we're setting up for a repeat of that last crisis. Let's hope the banks are better prepared and have loaned money to less questionable people. It would also be instructive to see the shorter term rates, not everyone finances for 30 years. So I would say in theory and in practice interest rates have major impact on house prices. We would not have the bubble without the low interest rates as people wouldn't not be able to finance the purchase of those houses at those prices.

olivermarks 8y ago

https://www.ft.com/content/91122596-c8c0-11e8-ba8f-ee390057b8c9 https://www.ft.com/content/91122596-c8c0-11e8-ba8f-ee390057b... Rana Foroohar Dark clouds gather over the US housing market

MoBattah 8y ago
pay wall

Twirrim 8y ago

I've noticed several houses over the last month or so that haven't sold anywhere near as fast as expected. Around here (Greater Seattle area), houses have been selling in a matter of days: On the market by Wednesday, open house at the weekend, offer accepted on the Monday. If there had been just one house not selling that fast I'd have assumed overpriced, or something noticeably wrong with them, but even the new builds are struggling to sell at a price that would have been market competitive back in July / August.

girzel 8y ago
My brother put his (Seattle) house on the market about a month too late. What he was expecting to move in days took two months, and at a significant reduction in price. Something definitely changed around mid/late-summer.
Qworg 8y ago
The current chill with China is one of the rumored causes - less investment money coming to the US.
donavanm 8y ago
Check out https://seattlebubble.com https://seattlebubble.com. Numbers started changing in May, was “obvious” in sept. Average time on market is up to about two weeks. Was single digit days back in Q2. I still see in demand property going same day. Inventory is up, sales flat to down, prices mostly flat. Way beyond seasonal demand changes. Will be curious to see what happens in Q1/Q2.
- conanbatt 8y ago
  >. Average time on market is up to about two weeks. Still insane.

wishinghand 8y ago

I've been bookmarking a lot of homes on Zillow lately within the app and I get almost weekly emails about prices drops. This is in the San Diego, CA area.

cbanek 8y ago

What is with the repetitive part of the graph that almost looks like a heartbeat? It looks like some kind of yearly cycle where around the holidays the prices don't move so much (probably because everyone's on holiday). It is a bit higher than the last few peaks, but not by that much. I think people also have been raising their expectations of what they will get recently. I have been watching Zillow price drops well for Tucson, where I've been looking to buy, and waiting for things to hopefully cool off.

ac29 8y ago
"Annual January troughs are due to more homes coming on the market after the first of the year"
jackcosgrove 8y ago
Helpful hint: Thanksgiving day is the best day of the year to buy a home (offer accepted) in the US, provided you like what's on offer. It's the slow season but there's less inventory.
- village-idiot 8y ago
  I always switched apartments in winter for that exact same reason.

rch 8y ago

This is true even in Boulder, which mostly endured the 2008 downturn. I'm curious to see how it works out.

partiallypro 8y ago
We'll likely never see a housing crisis quite like 2008, at least not a for a while, but many cities really have overshot reality. I'm in Nashville and it's absolutely insane what people are asking for houses in bad neighborhoods or houses in good neighborhoods. It might not be a lot if you're moving here from California, but if you're from the region even Atlanta or Charlotte, you're getting a bad deal. Condos last I checked were cheaper in Charlotte and Atlanta in good neighborhoods than Nashville. Even in surrounding cities it has greatly outpaced rationality. Homes in East Nashville are up almost 300% in 8 years. That's not normal.
- wil421 8y ago
  Do Airbnb and Vacation homes push prices higher in Nashville? Planning a trip to Nashville and there are a lot of Airbnbs available. I’ve known a few people with rental or vacation condos in Nashville. I’m in Atlanta and it’s nice to see prices cooling off. Especially since I want to buy soon. A lot of lisitings look like the sellers are way too high especially in hot areas.
  - rashomon 8y ago
    They absolutely do like tourist-heavy cities like Barcelona or London but a temporary drop in a white-hot housing market isn't a good sign to buy. Houses are still ludicrously expensive.
- dangus 8y ago
  Nashville is one of the fastest growing cities in the US, along with being small to begin with, which should make it an outlier, yes?

romed 8y ago

It is interesting but be aware that expressing these figures as a fraction of listings necessarily biases the result to weak markets, where the properties are on the market longer and the inventories are greater. In "strong" markets (according to the point of view of a realtor; dysfunctional markets to everyone else) such as San Francisco inventory is currently near record lows with only about half as many listings as we had in 2010.

jldugger 8y ago

What a strange metric. It's not 'prices are falling' even though doomsayers really want it to say that. IMO what it mostly says is 'Sellers have been posting really high numbers and slowly walking them back.' Which is effectively a time-based auction, so it's not a completely irrational price discovery model.

nerdponx 8y ago
That sounds to me like the market is plateauing.
- partiallypro 8y ago
  JP Morgan just laid off a ton of Mortgage brokers fwiw.
  - latchkey 8y ago
    Source: http://archive.is/3psee http://archive.is/3psee
- jldugger 8y ago
  Look at the chart -- its an ongoing trend. Why does this particular moment indicate the start of a plateau?
claydavisss 8y ago
Sellers have been greedy...but reductions send a pretty clear message to buyers: wait, and there will be more
- eksemplar 8y ago
  Sellers will always be greedy, the problem arise when buyers and lenders take risks. In Denmark housing is way higher than it was before the crisis, but wages aren’t really up. The market has now reached the point where the middle class can’t afford to buy a home near our biggest cities. Of course it’s going to end poorly. Especially with the aging population. If we didn’t own an appartment in the central part of time that was bought at 30% lower than the current prices I’d honestly be shitting bricks.

kosei 8y ago

Article seems so click-baity. Last year, more than 1 in 4 home sellers dropped their price, according to the included chart, but the market was hotter than ever.

ChuckMcM 8y ago

In California this has become noticeable to even the casual watcher of real estate. Per my earlier comment about people who are speculating and trying to 'flip' houses, I'm seeing pretty rapid price rollbacks on houses that were previously sold < 18 months ago. My speculation is that these people are trying to unwind their position because the market is softening and they don't want all their capital tied up waiting for the rebound. The combination of higher interest rates and tax code changes which limit mortgage interest deductions[1]. While $750K seems like a pretty high cap for limits to kick in, in the Santa Clara county, the median house price is over $1.3M so that is over $500K of mortgage interest you can't deduct. That changes the calculus of buying an expensive house and I would not be surprised if that is reducing the number of buyers. [1] https://www.marketwatch.com/story/what-the-new-tax-law-will-do-to-your-mortgage-interest-deduction-2018-02-09 https://www.marketwatch.com/story/what-the-new-tax-law-will-...

anonymous5133 8y ago
I have a friend who works as a realtor and she says that the market is definitely starting to cool off. There are less "mid-range" buyers and more low-end buyers because the prices have risen too much and interest rates are reducing the amount people can borrow. End result is previously a buyer was a mid-range buyers but now they are low-end buyer because the bank is not willing to lend as much anymore. Also there is data from CAR which shows both sales price and sales rate is declining. Inventory should start to build up going forward as home sit on the market longer. https://www.car.org/en/marketdata/data/countysalesactivity https://www.car.org/en/marketdata/data/countysalesactivity

CogitoCogito 8y ago

From the article: > We define a price drop as a listing price reduction of more than 1 percent and less than 50 percent. I would like to see the number of houses that increased their listing prices by more than 1% for a clearer picture. Without that information, I don't see how this graph leads to the conclusion of a general price drop.

bmm6o 8y ago
Does that ever happen? As a casual observer, I don't think I've ever seen it. When would a seller raise the asking price of a house already on the market?
- CogitoCogito 8y ago
  I don't know how often it happens. That was my question after all. Judging by the downvotes I received, I guess people here either know (or assume) that asking prices don't rise. Unfortunately their downvotes aren't as educational as the statistics I was asking for.

masonic 8y ago

I wonder about the data legitimacy on these sites. I looked my place up on Zillow a few weeks ago, and it said $1.5 million. There's been only 1 sale here in the past 2 years, artificially low at $950K. A neighbor's just sold for $1.32M. Meanwhile, Redfin has mine at $1.04M. Zillow has my original purchase price at about 45% of what it actually was (and publicly recorded at). WTF?

jedberg 8y ago
My family who invests in single family homes said that Redfin is far more accurate than Zillow. In other words, he usually ends up paying close to the Redfin estimate.

wstuartcl 8y ago

Would also like to see this data against initial price charts -- my gut is that the market is over pricing on the initial price point and pulling back as the pricing was too optimistic. May just be a sign that people in the market assume their sales could be much more profitable than reality allows. TLDR: Sellers are trying to squeak out higher prices than in the past and the market is not accommodating the maneuver, or it is a tactic where an initial over inflated price + reduction is a ploy to dangle the properties at the true-wanted initial price.

socalnate1 8y ago

If you are interested in some really good data on the San Diego area housing market: https://www.piggington.com/september_2018_housing_data_slowdown_here https://www.piggington.com/september_2018_housing_data_slowd...