Why are sales prices going down and listing prices going up?

Asked by JC Miller, Boca Raton, FL Tue Nov 25, 2008

If the average sales price in Boca Raton has gone down approx 25%, why are listing prices going up? It seemsas if the local real estate agents don't want to face the realities of the current real estate market conditions.

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6
John Detweil…, Agent, Boca Raton, FL
Wed Dec 17, 2008
People are bottom fishing and there are are a lot of lower price sales on homes now. This is not yet driving up prices because the supply of homes through short sales and foreclosures is still going up. As you probably know if the supply keeps going up it's hard to get the prices to increase.

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The Florida…, Agent, Spring Hill, FL
Tue Dec 9, 2008
Hi JC - I've been noticing that same trend in my area (Hernando County, Florida). I was just doing some research on a property and the sales pegged it at $70,000-$80,000...all the comparable active listings were $120,000 or higher... it makes absolutely no sense other than agents agreeing to take (and spend money on) listings that they know they can't sell.

I will tell you this, though...it's most likely not the agents who aren't willing to face the realities...it's the sellers...

Many agents just have a hard time walking away from a listing (even one that's over-priced).

Keep looking and you'll find the deals - I usually find 1-2 per month or so...

http://www.hernandoluxuryhomes.com/2008/11/30/what-you-can-l…

Best of Luck!

-Josh
0 votes
Dp2, , Virginia
Tue Dec 9, 2008
Joan is right: "don't blame the agents"--at least most of them.

The market value of a property is whatever buyers are willing to pay for it--no more and no less. We're in a buyer's market right now; buyers are speaking with their wallets: they're demanding lower prices. Also, in some markets, the rising numbers of foreclosures has increased the supply of houses on the market. That increase in inventory also is helping to drive the median sales price lower.

Unfortunately, there are many sellers who are still in denial; they haven't accepted the reality of todays market conditions. So, they'll list their properties for whatever they think the properties are worth--often against the advice of their realtor. Their properties will sit on the market for awhile until the sellers soften their positions, and come back to reality. Afterwards, they'll listen to their agents, lower their asking price, and eventually sell their properties at the market rate at that time.
0 votes
Ted Guarnero…, , Juno Beach, FL
Mon Dec 8, 2008
Hi JC

The truth is without more information or an address, It will be hard to give you an exact answer.
Yes there are times when Realtors list homes for more than Market rate, That really is not fair to anyone including the listing Realtor and seller. Feel free to email me more information on the property and Ill give you detailed information

Ted Guarnero
Illustrated Properties
561-452-2550
Web Reference:  http://www.tedsoldit.com
0 votes
Steven P Wood, , Jupiter, FL
Tue Nov 25, 2008
Hello JC,

If the Price that a Property is Listed for is below MARKET VALUE, then a correction to the Price is needed.

MARKET VALUE can be determined by Recent Sales.
MARKET VALUE can also be determined by Competing Active Listings.

If a Property is Listed below Market Value, and the Property is being sold as a Short Sale, then some Agents beleive that the lower price will yield a faster sale...

But that is not the case! The MARKET VALUE is actually Higher!

Banks do not want to lose money.
They hire Appraisers and Brokers to give a Current Market Value to the Banks.
If the Current Market Value is Higher than what the Property is Listed for, then ultimately, the Current Low Price will have to be Raised to the MARKET VALUE!

SO, it may look like the Price is Going UP, but in reality, the Price was nor correctly priced for the Current Market.

Could this be the case that you are referring to?
Web Reference:  http://www.ByJoveMyHome.com
0 votes
Joan Lorberb…, Agent, Boca Raton, FL
Tue Nov 25, 2008
Hi!
Please don't blame the agents! Well, at least most of us! I know I try as hard as I can to explain the reality of the market to my sellers but sometimes they would rather go on with a wish and a prayer. Also, I also explain the reality of the market to my buyers who see a property they like and that is priced to the market but they want to offer 30% or more less than that.

Here is a link to an on line article that might be helpful to you in understanding what's going on:http://tinyurl.com/5t7yvz

Thanks for your question!

JOAN LORBERBAUM MOORE
Broker Associate, GRI
Lang Realty
9858 Clint Moore Road
Boca Raton, FL 33496
561-573-3238
joanmoorerealtor@gmail.com
Web Reference:  http://tinyurl.com/5t7yvz
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