Dennis Norman
By:Dennis Norman
Granted,to be a real estate investor you have to be sort of an optimistic person but by now you have hopefully retired your rose-tinted glasses and perhaps have switched to safety glasses. However,according to a report just released by Trulia, many sellers out there are seeing the glass more full than it really is.
According to the Trulia report,26 percent of homes currently listed on the market in the US as of September 1,2009 have experienced at least one price cut. Price reduction levels have increased for the fourth straight month and have seen a 10 percent overall increase compared to June of this year. During the summer months of June to September,the total amount slashed from home prices has increased by more than $1.1 billion to$27.4 billion from $28.5 billion. The average discount for price-reduced homes remains at ten percent off of the original listing price.
I think now is no time for investors to be optimistic about the housing market and price their homes higher than the market supports. Instead I think now is the time for investors to be conservative and adjust their expectations of today’s real estate market downward and be competitive.
Several cities have seen four consecutive months where the percent of homes that have seen a price reduction has increased month-over-month,underscoring that sellers across the country might not be fully adjusting thier home value expectations to the current real estate market.
Below is a video from Trulia on the report:
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