The Price is Right + A Lesson in Data Discovery
We’ve always been taught to look at data with a discerning eye and an eye for the logistics. If an outlet cites an increase in home sales, there are more questions that need to be answered: home sales where? during what period? based on what? homes of what value?
The number of pending home sales has, in fact, been on a steady rise. Logistically, there need not be an increase in the number of homes for sale between the last year and the current data. There could have been 5,000 homes for sale in both years, and of that pool of homes for sale, one year reports more sales.
As is the current similar case. There are actually 11 percent fewer homes listed for sale this year in Southern California, as compared to last year. It is the time period between the start of 2015 and the current time, where reports show 35 percent more homes listed for sale.
Inventory is rising, and over priced homes are sitting on the market with no offers. With 10 percent of the active inventory reducing their asking price, many sellers begin chasing the market.
Price reductions demonstrate motivation, and a commitment to the reality of the market. Talk with one of our agents about how to strategically make these reductions to ensure you don’t end up chasing the market.