Every 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---