Homes That Are Overpriced Sit On The Market For Quite Some Time Without Getting Any Offers
A report from the Miami Herald in Florida. "Multimillion-dollar home prices continue to make headlines. But in truth, Miami-Dade’s luxury home market is continuing to soften, said Ron Shuffield, CEO of Berkshire Hathaway HomeServices EWM Realty. The problem: So many luxury homes on the market. The oversupply in the residential luxury market drove third-quarter sales prices down — to 81% of the listing price for condos and 84% of the listing price for single-family homes. That data comes from the local and regional Multiple Listing Service."
"The luxury condo market fared worse than single-family homes because of over supply. The luxury condo market has 45.4 months of supply — up from 43.7 months of supply in the third quarter of 2018, said Shuffield. The luxury single-family home sector has 18.8 months of supply, down from 19.7 months in the third quarter of 2018. 'Once you go over 18 months, the sales slow and inventory grows,' he said."
From 5280 in Colorado. "While Denver has not yet reached the status of a buyer’s market—except in the luxury condo segment—the city is seeing signs of slowdown. For one, the number of price reductions and the gap between list price and sold price has increased. For the first time in four years, the year-to-date close-price to list-price dipped below 100 percent to 99.31 percent in September."
"Luxury market condos, priced between $750,000 and $999,999, and single family homes priced over $1 million, are seeing more of a shift to a buyer’s market, notes Jill Schafer, chair of the DMAR Market Trends Committee. 'Buyers today really want new. We have an inventory of luxury homes that is now what buyers consider dated, and not moving quickly,' Schafer says. 'It’s sad to say that homes that are 10 to 15 years old appear dated to today’s buyer.'"
The Washington Blade in DC. "Any experienced agent will tell you that the market feels a little squishier than in previous years, even from earlier this year, so to sell at the best terms possible, it will take a little more thought and a lot more strategy than in recent times. In the short term, there is no denying that the market is not quite as 'frothy' as it has been in previous Octobers, which is normally a busy time of year as a key month of the fall market. But this October, with impeachment talk dominating the news cycles, and constant henny-penny economic predictions, has seen a little bit of a slowdown."
The Bothell Reporter in Washington. "Mona Spencer, branch manager for John L. Scott’s Redmond office, said buyers and sellers should be cognizant of current market conditions for the best chance at success. She said brokers in her office are seeing homes with deferred maintenance that are also overpriced and un-staged sit on the market for quite some time without getting any offers. Making these mistakes when listing a home puts more negotiation power in buyers’ hands as the home sits on the market, she added."
"'Competition in our area has slowed down since the same time last year. Last year, most offers faced competition,' said Spencer. 'I am currently seeing less competition than last year but well-priced homes in great locations can still garner more than one offer. The winning offer is often still the one that is above the list price with waiver of contingencies.'"
From Newsday in New York. "Overall inventory across the Island, excluding the Hamptons and North Fork, was 14,051 in the second quarter of 2019, the latest available figure, up 21.7% from the same time period last year, says Jonathan Miller, chief executive officer of Manhattan-based Miller Samuel Inc., a real estate appraiser firm."
"Amy Pfister, a Douglas Elliman Real Estate agent based out of Sayville, says she noticed an uptick in homes being listed between $250,000 and $350,000 toward the end of spring. Not only is there a higher quantity, she says, but some houses are in better shape and in neighborhoods with top-rated school districts, easy access to public transportation and closer proximity to dining and shopping."
"'In the last two years, anyone who was shopping under $300,000 wasn’t really able to get their hands on anything you could move into or in an area they might have desired,' Pfister says. 'Now you can get something decent, that is move-in ready. Maybe not up-to-date, but in a neighborhood you want to be in, and you can do your updates as you go.'"
The Sacramento Bee in California. "The price of a remarkable estate overlooking the roaring Bear River near Auburn has been reduced to $5.9 million, according to the official listing. The 10,000-square-foot home at 11391 Overhill Drive, off Highway 49 in Placer County, hit the market earlier this year at $7.9 million."
"The property, which was featured in a Sacramento Bee article in August, is perched on 150 acres offering views of the river below from nearly every room. The property’s entire north boundary is the Bear River, said Bruce Renfrew of California Outdoor Properties, who is the co-listing agent."