Despite the headlines, home prices aren’t dropping….
I know you’ve seen the headlines that imply home prices are dropping like a rock.
Like this one from Redfin…
“Price drops hit highest level in 18 months as high rates dampen buyer demand”.
Variations on this theme are all over the news, which might, understandably, lead you to believe that prices are falling. But, as they say, the devil is in the details.
And the key is understanding the difference between the LIST price and the Sale price.
The List or Asking Price is what the seller hopes to get for their home – but you can’t put any price tag you want and expect it to sell at top dollar.
Today’s buyers are savvy customers and aren’t paying a premium for a house they perceive to be less than perfect, especially when their budgets are constrained by today’s higher mortgage rates.
As a result, sellers often need to adjust.
Sellers are often the last to realize that the market has moderated but quickly realize they’ve overpriced their home when, despite lots of showings, no offers materialize.
Smart sellers react quickly by “dropping” the price – which is happening more frequently than in the past.
Not only is the percentage of homes with price reductions rising, but the number of homes doing so each week has increased.
Hence the misleading “home prices are dropping” headlines.
But here’s the fact of the matter – SOLD prices, which is what the buyer actually pays, are still rising, and are expected to continue to do so for the next 5 years.
While they’re not increasing at the same rate as in the past, home prices are continuing to rise.
If a move is in your future, the key is working with an experienced agent who understands the current local market.
Who you choose to work with matters, so choose wisely! Contact me anytime at 215-813-6655 or email me at Lynne@LynneKelleher.com for a consultation.
PHOTO CAP: Lynne Kelleher, BHHS Fox & Roach, Realtors, 215-860-9300/215-813-6655