If you are a seller of real estate, and your property is still on the market after longer than the average SOLD property in your market segment, you are chasing the market - DOWN ! The statistics for whether prices are going up, down, or remaining the same, are open to interpretation. But lets face it - BUYERS HAVE THE MONEY. If you have had your property on the market longer than the others you are CHASING THE MARKET DOWN.
If you think I am just being negative - here is a new example of a statistic that Buyers are relying on: According to The Deloitte Consumer Spending Index, consumer spending is down for the third straight month in July - due to the influence of a declining housing market. (http://www.big4.com/?page=news_detail&url=deloitte-july-2010-consumer-spending-index-drifts-down-for-third-straight-month-1522) The DCS Index uses consumer cash flow as an indicator of future consumer spending.
I have heard reports on some of the major networks that home prices may have started to rise again. However, the detail that is un-reported is: rise from what? From the highs of the boom? Or from the pits of the bust? Are those "rising prices" in your market? Are they at your price point? Statistics, unless detailed in any report, are nebulous and used to grab your attention. Whodathunkit: Statistics can be reported incorrectly, and worse, improperly.
Ask your agent or broker: What percentage of list to sell are homes selling at in my market at my price point? Now CLARIFY it. Of those that sold, how many were "re-listed", and
- a) what was the first list price for this property,
- b) how many total days was it on the market, and
- c) what is the TRUE list to sell for that property and the TRUE Days On Market (DOM)?
Note: Quite often, the only MLS statistic that is reported, is the list to sell and the DOM for the current / or last listing agreement. Understanding the Total DOM and True List to Sell is a key to your decision making.
There is more to real estate than pictures on the Internet. If you are a REAL seller, listen to the expert you have hired to sell your property. They may understand your market's statistics more completely than what appears on the surface. If you are holding out for the last $20K from a buyer who "won't come up" to your price, the real estate market does not appear to have corrected yet. And what is worse, it is still a Buyers Market.
One bit of consolation: If you sell now, you can still buy your next home in this market - because YOU will have the money!
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