Trulia yesterday released the latest findings from the Trulia Price Monitor with regard to asking prices. It reported that asking prices are slowing in 68 of the 100 major U.S. Metros, with the largest declines being seen in Oakland, Sacrament, Orange County, and Los Angeles respectively.
Home Asking Prices Slow Down-My Personal Experience Agrees
This data mirrors what I have been mentioning in my blogs recently; inventory is up, buyers are not as plentiful due to increased prices, uncertainties and mortgage rates bobbing up and down, and investor activity is down.
This does not indicate good news for continuing price increases and in fact just this last week we lost two buyers for our short sales right prior to releasing all contingencies and close of escrow due to price. Both of these buyers wanted to decrease their offer by nearly 10% of the asking price on short sales that were already negotiated and approved with the banks.
We attempted to counter their new offers to the bank and both were rejected. Both houses are back on the market, with little to no interest. It isn’t that the short sale approved prices are too high; they are in line with recent comps. It is that the buyer demand is not there and the only way to get buyers is going to be to lower the price over time and hope the new approval will fall in line or that we can successfully escalate and fight the banks demand for asking price. It was a disappointing and frustrating week for us and our sellers and unfortunately it appears as though there is more of this to come, in our area. So brace yourselves and prepare to fight a harder fight with buyers, sellers and lenders with regard to values.
Change in Asking Prices in Sacramento
To read about the change in asking prices in Sacramento continue reading our BLOG.