Price Reductions do not mean home prices are going down.
Price reductions do not mean values are down
Housing Wire and Altos Research had an article last week that suggested that price cuts could be a leading indicator of future home prices. The facts do not support that at all.
In 2018-2019 home prices were up even with increasing price reductions (approximately 30 % of listings had a reduction in price.)
2020 home prices rose while price reductions were steady from the previous year, averaging over 20% of listings reducing their list price.
2021 Home prices went up 19% for the year with sharply higher price reductions.
2022, home prices skyrocketed in the first half of the year even with a significant increase in price reductions, in the second half we did see prices decline 3% from the peak with continued price reductions
2023 home values continue to rise to levels above the peak in 2022 and are at all-time highs, even with price reductions rising to 35%.
Most of the price reductions we are seeing nationally are from sellers that believe they can get more for their home than is realistic and this is true for any market. To put that into perspective: You can go put a for sale sign on your car offering to sell it for $10k more than its value and no one is going to buy it. Even in this market with prices increasing noticeably monthly, you still need to be priced correctly when you list your home.
Historically there have always been price reductions for when a seller over prices their home, the reductions just mean they finally listened to their agent and priced their home more appropriately for the market.
Quite simply: We still have significantly more demand than we have supply and that will continue to be good for home values.
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Since 1987 I have been helping my clients fulfill their dream of home ownership! CMG Home Loans is located at 222 Commons Way Toms River, NJ 08755. NMLS #1820. Visit www.RobertRauf.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721,