A Falling Tide . . . Some Ships Sink Sooner


A Falling Tide . . . Some Ships Sink Sooner
By Scott Rogers • October 13, 2010
Yesterday I discussed that when the real estate market improves all homes will increase in value. Thus, holding out to sell your current home for a higher price won't do you any good -- as you'll then also have to pay more for the house you are buying. But let's flip that on it's head....when the market is getting worse, do all ships sink at the same rate? I'd suggest that some sink faster than others, and that they sink deeper than others, for example: Houses on busy roads Houses with steep driveways Houses with disadvantaged yards (small, steep, etc) Houses with unconventional floor plans In the heat of the market a few years ago, a house on a busy road might have sold for $250k compared to the same house located inside a neighborhood selling for $255k. Now, the house within the neighborhood might sell for $240k, but the house on the busy road won't sell for $235k. It might sell for $230k, but it's likely to be $220k or $225k. This is primarily the result of the high inventory levels that almost always exist in times of slower market activity. A few years ago, being located on a busy road might have only equated as a $5k price difference because buyers didn't have many houses from which to choose. Now, however, when buyers have LOTS of houses from which to choose, most buyers will look past the house on the busy road, instead choosing a house within a neighborhood. More choices for buyers means that houses with significant "issue" (see bullet points above) will sit longer and longer on the market, and sell for less than you would expect them to sell for, given their other characteristics. Receive Updates by Email Recent Articles: Is There A Price You WOULD Pay For This House? There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 23, 2024 (unless otherwise noted).
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