There seems to be a disconnect between Buyers and Sellers that is a little difficult to solve right now. I don't have any easy answers, but wanted to attempt to quantify both sides of the equation.
Sellers already believe they have made adequate changes to their pricing. I had a discussion with a potential Seller today (I say potential, because I truly believe he had potential to be a "Seller" rather than a "Lister") and he made the point that some people actually have to sell. That is to say - they are moving because of a job or health concerns or because they have too much house or they are having difficulty with payments etc. Others are still out there "testing the market." I am here to tell you that Days on Market, Average Sales to List Price Ratios and other key indicators are all swayed by those who are on market with no desire or motivation to sell.
<SPAN class=yui-spellcheck-wrapper>Price reductions are only meaningful to the extent that the original price was in line in their first place. Perceptions are that if a property has been reduced $50,000 - that's a big deal. Well I'm here to tell you that it's insignificant if the home was $100,000 overpriced to begin with. We still have a long ways to go in the case of overpriced property<BR></SPAN>
Many folks are waiting on the sidelines waiting for prices to fall - a phenomenon we have not seen in our market here in Helena. We see re-pricing going on, but overall, the market seems to be doing fairly well. Again, there are those Buyers that have to buy for the same reasons as outlined above.
I would urge Buyers to put aside price and concentrate on value instead. Value takes into account the intangibles of a home. Its unique characters and qualities. The homes great location - sometimes something as simple as "I won't have to put $100 worth of gas a week in my car if we buy this place that's closer to work" is all of the added value one needs to make a GREAT home-buying decision.
Further - look to the long haul. All of us get the unique opportunity to live in a home that may turn out to be the best investment we ever made, but what happened to the days when we concentrated more on making a decision to live in the best place we could ever imagine. That's the best investment in my opinion.<BR><BR>