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Are Sellers Softening Up?

By
Real Estate Agent with RE/MAX

 

The beginning of the season for home buying is up, and years of low prices and hastened hopes for the anticipated housing recovery may be viewed differently as how sellers price and prep their properties.

Sellers are more enthusiastic in pricing their homes competitively than this time a year ago and 45 percent stated that sellers are more enthusiastic in changing the exteriors of their homes to attract buyers than they were last year, as reflected by the 51 percent of 600 agents in the latest Coldwell Banker survey.

Jessica Edwards, Coldwell Banker Real Estate Consumer Specialist, stated that, “Within the past year, sellers were more willing to price their homes competitively and took my advice to make their home inviting and appealing to a broad cross-section of potential buyers.”

A year ago, several home sellers rejected a shift on their prices. The high percentage, particularly 22 percent of home owners with a mortgage who has a debt of more than their homes’ current worth are not in a position to negotiate – this was one of reasons. Another is that the expectations of getting higher prices made some sellers willful in waiting.

Relatively, time is running out on homeowners waiting for higher prices before selling their homes, as found by a survey conducted by Move, Inc. last November. Also, it was realized that the 17.5 percent homeowners waiting has been stagnant during this time of extended low prices, even actually falling slightly since March 2010, signifying the pending supply of homes is manifesting signs of stabilizing.

According to the Move survey, homeowners ages 35 to 49 comprising the 22 percent and those making $40,000-49,000 a year comprising 21 percent, in contrast to other respondents said that in the past year, they’ve been delaying selling their homes, therefore possibly indicating that growing families needing more home space may be having difficulties in moving up, as the product of today’s market conditions.

52.2 percent of all homeowners said they would be interested to place their homes on the market by price increases in their communities after years of low prices. The 11.7 percent of owners will be interested in selling their homes by a 5 percent surge in home prices. Price surges of 15 percent or less would interest not less than 26.6 percent to market their homes. Only 44.6 percent of homeowners said that even if prices surge up to 20 percent or more in their neighborhood, they wouldn’t sell their homes.

A vividly lower number of homes in the market, which might change in spring time, is a factor presently favoring sellers. In January, an inventory drop of 6.59 percent in the national for-sale inventory was the eighth month of decline. Realtor.com indicated that currently, the total number of listings is 23.20 percent lower than the levels observed in January 2011.

Comments (3)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

I believe sellers are finally realizing that if not priced to the current market value, it will not sell.

Feb 27, 2012 11:08 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

I agree that there is a pent up demand of homeowners needing to sell.  Many cannot until the prices go up.

Feb 27, 2012 11:09 PM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

We find homes, other types of real estate especially waterfront, land and farms sell year round. Not a time to let off the marketing throttle just because of winter, a little white stuff. Mom and Pop groceries are big too.

Feb 27, 2012 11:15 PM