Why Are There so Many Homes on the Market for so Long!

By
Real Estate Agent with Rancon Real Estate

HomeEvery street you drive down, seems to have several "For Sale" signs in front yards. These are often the same signs day after day - week after week - and month after month. What is happening that has brought the selling frenzy to a stand still?

For the past few years, our area was one of the fastest appreciating areas in California. What happened? Okay the "funny" interest only loans started the slide, but the problem with inventory is something different. The prices of homes have not dropped enough to attract the buyers that remain. Homes are still selling but not a two year ago prices!

Homeowners still remember what their model match (exactly the same home) sold for . . . a year and a half ago . . . so they want at least that price and maybe just a little more. After all that was a while back! The market has changed and the "perceived" values have not. Many owners still believe that if they just wait a little longer, their home will eventually sell for what they are asking.

The fact is, today, time is not your friend. The longer a house is on the market , the less chance it will sell---particularly at the initial asking price. Prices are heading lower as home owners that have to sell because on job transfers, bad loans, or family issues, etc. make price adjustments to get their homes sold.

Different agents can't help, more advertising can't help a overpriced home (Buyers are going to chose the best "deals" for their family) Over the top, the most beautiful, most upgrades, all of that will still not make a buyer overpay in today's market. (Anyone heard, "If they fall in love with my home, they will pay cash for the difference if it doesn't appraise"?----Sorry, buyers care about their pocketbooks. It will cause a buyer to choose one home over the other but only if the price is right.)

Today it is about price and condition---

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Groups:
Everything California
Tags:
homes on the market
slow selling
realistic pricing
overpricing

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Rainer
7,425
B. Jason Perry
The Right Product For the Right Price
B. Jason Perry Insurance Agency

The current market is still over way over priced, and the marjority of homes that are being sold are most likely people that feel like they need a home now, and that it's the perfect time to buy, or those who are moving from one location to another.  

For the most part sellers are putting their homes on the market just to test it and see if they could get the "magic number" that would make it possible for them to sell for an overpriced amount then re-purchase a "deal". 

We see this all the time with people who try to sell there own cars.  Most private sellers always ask for much more than the car is worth. This is the major reason why larger homes are not being sold as they have seen the majority of the decline in value and the homeowners have lost more in equity.  

We almost never see new purchases over 3500 sq ft come through our office these days.  I have a client right now who has made 4 reasonable offers on homes that are overpriced and the sellers did not even entertain the offer. 

We do offer very competitive rates for homes built in 1990 and later. I have included our rates below for for these types of homes. 

 

 

 

 

 

February 20, 2011 09:17 PM
Rainer
11,260
Colette Gray
Senior Loan Officer, HomeSafe Reverse Mortgages
Redondo Beach, CA

It's a matter of supply and demand.  Prices won't go up until the glut of homes on the market get sold and supply drives prices back up again. 

I think it's worthwhile for homeowners to understand that what their house was worth two years ago is not what it's worth today.

June 09, 2011 05:43 PM
Rainer
27,578
Billy Burke
CAI - AARE
The Auctionarium, Inc

It's nice to see a more realistic attitude about the market today than there was in 2007 when this was first posted.

 

 

August 04, 2011 08:02 PM
Rainer
203,455
Cliff Keith
Redwood City Real Estate
Today Sotheby's International Realty

Good post and infomation that can give us all food for thought. I hope your market picks up because our market is HOT HOT HOT here on the San Francisco peninsula.

March 08, 2013 03:13 PM
Rainmaker
42,861
Teresa Tims
Teresa Tims
TDR Mortgage & Real Estate Group

Buyers valued their money that is why for them PRICE is a KING...

September 04, 2013 09:53 AM
Anonymous
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Rainer
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Sandra Williams

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Specializing in Temecula Valley California, including Temecula, Murrieta, DeLuz, La Cresta, and Wine Country Get great free widgets at Widgetbox!