First Alliance Title did a great write up recently about the dangers of overpricing in our changing market. Read the details below.
If you’ve been selling real estate for two or three years you’ve grown accustomed to properties going under contract within a couple of weeks. Our average days on market has hovered right around 25 days. As our market slows, we can expect the days on market to significantly increase. In fact, the days on market average over the past 30 years is 70 days. Even if you look at the last hot seller market in the 1990s, the days on market was around 50 days. The 25 DOM of recent years is super fast in comparison to historical averages and it’s going to change.
As our market slows, sellers must be made aware of the significant risk of overpricing their listings. In a slowing market, overpricing a home will have a huge impact on days on market as well as ultimate sales price. Over the past two years, properties that did not need a price adjustment sold in about 13 days, whereas the homes that needed a price reduction took about 58 days to sell.
Comments(2)