Your Questions Answered
At Ashlar, I firmly b that an educated home buyer or seller is best equipped to make their own decisions. That’s why I take time out of my day each and every day to answer someone’s real estate question. And, when I think the answer can be useful to you as well, I share it here. So without further ado:
Highly location specific, but I can say this: People have extremely short memories when it comes to real estate for some reason and lose perspective.
YES, there have been more price reductions than usual. However, that does not mean that the median and average price is decreasing.
Price reduction DOES NOT MEAN that median and average prices are decreasing.
Here’s why: For the last 8 months or so, to price a home we would see what recent sales were (60 days max), add $20,000 – $50,000 to that number, and that would be the price. And the property would still sell.
What the current price reductions are is people (agents or property owners) adding that same buffer on top of provable sales to “take a swing” and see if there is still a buyer at that price.
This is also 100% normal seller behavior. Every seller wants the most money for their property.
Meanwhile, median and average prices are still higher even (20% in my location) even though inventory is up 40% to 80%!
Why is that? Residual buyer demand, and on good/great properties there will still be multiple offers.
The truth is that it will take months / years of this current trend building inventory to work through buyer demand and eventually hit a point where the median and average start to decline. We aren’t there yet (not even close actually).
I’ll be releasing my newest stats video covering this here this week:https://AshlarRE.com/stats
Basically, we’re at a transition point. If you’ve been thinking about selling, now is the time. And for buyers, you will find more to choose from as this trend continues.