Just to hammer the point home past your boredom threshold: Lereah says, “we do expect an adjustment in home prices to last several months as we work through a buildup in the inventory of homes on the market.” And “an adjustment in home prices” means “falling home prices.” For several months. This isn’t just an anomalous month. Year-over-year prices are expected to continue to fall for several months.
If you’re selling, you’d better pay attention. It’s better to drop your asking price now than later. If your real estate agent is urging you to drop your price or to lower your expectations about the number of offers you’re going to get and the prices that are going to be offered, you probably have a clear-eyed agent who is looking out for your best interests, even if the message isn’t something that you want to hear.
I can’t stress the importance of Lereah’s statement enough. “We do expect an adjustment in home prices to last several months.” He’s predicting that median prices will be lower next month, and the month after that and probably the month after that. Through the end of this year and possibly into next year.
If you’re a seller, think like a buyer. Why should someone buy your house this month if it’s going to be worth less next month, and even less in November, and even less in December? The sooner you price the house realistically, the sooner you’ll sell it. You’re competing against 4 million families who were trying to sell their houses in August. Not to mention the brand-new houses that are sitting empty as home builders drop their prices.