The Minneapolis Area Association of Realtors just published the latest weekly report for the week of December 8, 2008 and one of the more interesting data points is the continual drop in the percentage that sellers are receiving when they sell their homes. This is a factor of the market, but as well as the agent and seller starting the home out too high in this marketplace.
Given that sellers are now receiving 90% of their original listing price only confirms for me that most homes on the market are still about 10% overpriced. The sellers who are selling know it as well as they are accepting offers 10% lower than their initial asking price. Buyers will not over pay for houses in today’s market.
Below are some charts from the Minneapolis Area Association of Realtors:Â (Click on image to enlarge)
The table below shows the continual downward trend over the past two years. This is a reflection of agents and sellers still being unrealistic with original asking prices.
For an indepth dicussion and analysis on pricing see these two entries below:
- Price Reductions: How Soon Should a Seller Reduce the Asking Price?
- Pricing Property in Today’s Declining Market
The rise in distressed sale properties will continue to put pricing pressure on sellers. Those who get out in front of the market will not only be successful by selling their property, but they will have a much better experience as well. Just because a home is listed with an agent does not guarantee it will sell. Depending upon the area, 40-50% of the homes listed do not sell.