No sign of life yet for new home sales
May reading shows ongoing slump at start of key selling season; prices fall; April sales revised lower.
Last night, I checked how the Central Coast market was doing with Pending Sales. We hadn’t even broken 400 Pendings yet. The recent raise in mortgage rates I’m sure isn’t helping either.
Homeowners looking to sell need to take a reality check. I spent this last weekend showing homes in SLO and Los Osos. I’d put the homes in two categories; 1) the ones that have been on the market since last year that are still one or two steps behind the pricing curve, and 2) homes that have been listed within the last month or so that are priced where the market currently is.
One mistake I see homeowners making is that they look at what they put their home on the market for last year and say “I’ve already dropped the home 20%, I’m not going any lower”. While I know taking a price drop already is painful, a Buyer isn’t going to care what how much you’ve dropped your price, especially when your current price is still 10-15% above what the current market value really is.
If you’ve been on the market for awhile, you need to take a fresh look at the market and the comparables for this year. I wouldn’t count on the market rebounding and coming back up to your price either. With the way June is shaping up, the inventory levels we’re already at, and mortgage rates rising, we haven’t seen the bottom yet..IMO.