Chasing the Market While Pricing Homes in a Receding Housing Market

One of the hardest things to do in this crazy real estate market is price your upstate New York home correctly. There appears to be a phenomenon emerging which I am going to call“Enlarged Pricing Gaps”. The issue seems to occur when sellers in the market list a home, and then let the home sit for long periods of time at the same price. If the real estate market was flat, this would seem like a normal pattern, the house price is what it is. But when the market pricing is receding, the original “normal” market price for the home inherits an overpriced condition over time as the market values become further apart from the price of the home on the market.

The reality is that the more time that goes by, the further from market price the listing will be and the more unrealistic this seller will seem, and that in and of itself will keep people from coming to see it. No one wants to waste their time going to see something that is overpriced, and the public perception is that seller doesn’t really want to sell.

When dealing with a receding housing market is important to review pricing every 45-60 days and maket the necessary adjustments to ensure that your property appears priced right and to ensure that buyers will want to come see it.

Mortgage Rates Hit an All-Time Low

Average interest on a 30-year fixed mortgage fell to an all-time low of 4.69 percent this week, down from 4.75 percent a week ago, reports Freddie Mac.

Although rates have held below 5 percent since early May, Michael Fratantoni of the Mortgage Bankers Association notes that demand for purchase loans has fallen in six of the past seven weeks and now is at a 13-year low. Consumers have grown used to low rates, he explains, adding that they balk at buying because they are more concerned about stagnant wages and high unemployment.

Source: Washington Post, Dina ElBoghdady (06/25/10)

Select Sotheby’s International Realty celebrates Opening of the newest Lake George Real Estate Gallery TODAY!

Today, the newest Real Estate Gallery for Select Sotheby’s International Realty is hosting an open house from 12pm – 5pm. Stop by, see the new digs and enter our drawing for prizes from local merchants. This location is the third location in upstate NY and represents buyers and sellers of unique and distinctive homes… at all price points.

The address is 4587 Lake Shore Drive, Bolton Landing, NY 12814.

A reception will follow, by invitation only, at The Boathouse Restaurant on Beautiful Lake George.