Yesterday I had someone ask me if Wenatchee real estate is going into a downturn? I responded, "Absolutely not". They responded with the comment that they are seeing a lot of "Price Reduced" signs popping up around town.
Ah Yes... that is indeed true!
With all our economic activity and national publicity, the Wenatchee real estate market has been so hot for so long, sellers started getting greedy. They were putting unrealistic prices on their homes. The most common statement I hear is: "We can always reduce the price". "Well, yes BUT in the meantime we are losing business to the people who have priced their homes right and you have to wait until the market catches up with you". So, it's a matter of the sellers deciding if they want to test the market or price to sell.
What I am seeing is prices being reduced on homes that were priced at levels that had no justification. If someone would have come along and been willing to pay the asking price, it would have been unlikely to have appraised, ultimately killing the sale anyway.
If a home purchase is financed, an appraisal is going to be required by the lender. The appraiser must justify the purchase price with a balance of historical sales, pending sales, and market indicators. Greed is not a factor.
The answer to the question in the title... Stabilization coming.
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