The time has come for some home sellers to raise their prices. And it’s time for others to lower theirs
I’ve been hearing a lot of chatter out there from realtors, proclaiming how great the market is in the luxury side, and I knew from my research that I wasn’t quite seeing that. So I decided to check out the numbers once again to see what the real facts are.
This is what I found for luxury sales:
- Luxury home sales…$2 million +…is down 22% in 2013
- It’s really yucky, in that only 14 homes have sold thus far in this price range. 18 homes sold in Bergen County for the same time period in 2012
A 22% sales decline on already anemic sales volume isn’t considered a great market. In fact it borders on a market condition that sucks.
Here we are soooo close to the hyper active market in Manhattan and the borough’s, yet the Bergen County suburbs is on life support. We’ll talk about why this is happening in future post, but for now let’s just say that it’s bothersome at best.
As for the market below $2 million…it’s a different world…night and day:
- For overall homes priced up to $2 million the number of sales have increased by 14%. That’s a huge number!
- Homes priced to $499k…home sales increased 9%
- Homes priced between $500k-$999k…sales increased by 26%
- For homes priced $1.om-$1,999M…home sales increased by 31 %
Tell me that this isn’t great news!!!
So…if your home is for sale in this price …it’s time to raise your price!
Go for it!
For the first time in a long time, sales of homes priced from $500k-999k outsold homes priced below $500k. But from what I can see, this is due to a lack of inventory of homes for sale below $500k…so people have to gravitate to higher priced homes if they want to live in Bergen County
It’s time for the realtors to see the light and start raising sales prices.
In the past they have used negative sales data as scare tactics to deflate prices, but now they have the ammunition to increase prices.
If raising prices creates less sales, then that’s fine, because higher prices leads to higher values, and higher appraisals….and given the complaint that appraisers are low with their value estimates, this will help to end that practice.
- dramatic increases in sales volume means there’s more demand
- more demand means more sales
- more sales means…the market is improving and people are more confident to make a big purchase
- Low inventory means more competition, and more competition brings higher price
And best of all…price increases creates confidence in the market.
If prices don’t start increasing then why would anyone want to risk their money with such an investment. At that point you’d be better off putting tou money into the stock market.