Buyers and Sellers Still Disconnect on Price
With home prices down every year since hitting an historic peak in early 2005, you’d think buyers and sellers would agree that homes are fairly priced, but a new survey says otherwise.
According to the results of the Q1 2010 HomeGain Home Prices Survey, 76% of real estate professionals across the country say home prices in their areas have decreased. Their strategy is to convince sellers to price their homes to sell from the outset, but the gap between original listing prices and final sales prices illustrates that they’re not always successful.
About 77% of sellers believe their homes are worth more than their agents’ recommended selling price, but the proof is in the pudding – 90% of homes actually sold for less than list price. Nearly a quarter (24%) sold for 11% to 20% lower than the original list price, and 55% sold for 5% to 10% less than list price.
Buyers appear to be winning the argument - 63% of buyers believe that homes for sale are overpriced.
So what is the outlook?
Seventy-seven percent of real estate professionals predict national home prices will stay the same or decrease in the next six months, while others believe prices will rise.
Top 10 States Where Real Estate Agents and Brokers Think Home Prices Will Go Down In the Next Six Months:
- Minnesota (82%)
- Oregon (65%)
- Illinois (54%)
- Utah (50%)
- New York (44%)
- New Jersey (44%)
- Nevada (43%)
- Michigan (42%)
- Connecticut (42%)
- Washington (35%)
Top 10 States Where Real Estate Agents and Brokers Think Home Prices Will Go Up in the Next Six Months:
- Texas (41%)
- Massachusetts (38%)
- California (37%)
- Nevada (36%)
- Idaho (31%)
- Colorado (31%)
- Alabama (25%)
- Tennessee (25%)
- Arizona (23%)
- Indiana (22%)
General Manager at HomeGain, Louis Cammarosano, explains, “Many real estate professionals expressed concern over five factors that could potentially impact home prices adversely: rising interest rates, expiration of the home buyer tax credit, persistent unemployment, continued foreclosures and the release of shadow inventory held by the banks.”
However, real estate professionals also say that national results don’t accurately reflect their local market conditions, which may be healthier than countrywide averages make them appear.
Blanche Evans is CEO of Evans Emedia, Inc. and publisher of The Evans Ezine. As an award-winning journalist, Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and twice recognized as one of the industry's most "Notables."
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