Southern California Home Sales – “More than a third of sellers in Orange County dropped their price in July. Los Angeles and Inland Empire sellers were not far behind, with some 25% of sellers in each metro dropping their listing price in order to get buyers in the door.”
Southern California Home Sales:
Sellers Are Lowering Prices
Seller’s Price Adjustments Indicate Changing Market
One of the first indicators that a market might be changing … or at least making adjustments … is the number of sellers making Pricing Adjustments to their listed properties. This is a good indicator that the seller and Realtor involved have made a determination that market conditions have changed since the property entered the market, and that they have changed enough to warrant a price reduction to put the listing more in line with market activity.
We’re seeing this kind of activity now. Actually, it’s being seen in most all metro areas across the country, and Southern California and the San Gabriel Valley are no exceptions.
Here’s an article by Josh Ritnimit from the Pasadena Independent:
Pasadena Independent November 4, 2014
“Homes for sale in the major San Gabriel Valley markets are no exception. As of mid-September, 35% of all Pasadena homes listed for sale dropped at least once in price and a staggering 40% of all Monrovia homes for sale had price drops. Not even the seemingly bullet-proof Arcadia market is immune. Of the 236 homes currently for sale in Arcadia, 76 have dropped their price – almost 32%!”
A Less Volitile, More Steady Market Is Good News
This is not bad news for the San Gabriel Valley real estate market. In fact, it’s good news. We’ve seen a fairly long period of really fast activity and steeply rising prices. Now, lots of activity and high value are good things, but even good things need to be tempered with moderation. When prices and activity rise too quickly, we get “bubbles” and resulting market volatility. Too much volatility and we get unpredictability and an unstable market. All rising markets need to make readjustments to maintain stability.
The fact that many sellers are making adjustments to accommodate a maket that is growing in a slower, more dependable manner is good news. A healthy adjustment to our recent market activity will provide some “breathing room” for buyers and sellers, and indicates we’ve got a good, solid foundation being built under the market for the foreseeable future.