Fortune.com recently had an article discussing the large price drops in most cities due to the bubble burst of the real estate market.
In the article, Nin-Hai Tseng used a Trulia.com report to discuss house pricing trends across the US:
f you’re a buyer or seller, here’s what to expect this spring: Detroit, with an average discount of 19%, led with the nation’s deepest price cuts during the initial listing, followed by other foreclosure hotspots including Miami, FL with 11%, Columbus, OH with 11%, Baltimore, MD with 10%, and Atlanta, GA with 9%. Since these areas are already gravely depressed, the deep cuts could likely have long-lasting impacts on future home values.
The cities with sellers who didn’t cut deep enough during the first go-around and will most likely have to cut deeper are Phoenix and Mesa, AZ, Jacksonville, FL, Baltimore, MD and Chicago, IL.
What this says is that in general, many Baltimore home sellers are pricing their homes too high for the market to bear. Buyers are not responding, so the sellers lower their prices. When they are not lowered enough, and buyers still don’t respond, they reduce again. This, according to Fortune.com, makes Baltimore home sellers as a group one of the more stubborn, since they have to reduce more than one time before a sale.
To facilitate a quicker sale, many homeowners can price “ahead” of the market. This means lower than the other average sales in the neighborhood, because in many areas, prices are still declining. Houses that sell faster tend to sell for more than comparable homes who overpriced their homes at the beginning.
Hopefully our “stubborn” sellers will be stubborn no more!
For Baltimore real estate needs, make sure to contact me. I can help guide you in the right direction!