Sunday, October 30, 2005

Realtor Magazine: More High-End Sellers Cut Asking Prices

More High-End Sellers Cut Asking Prices

(October 21, 2005) -- Most of the homes on the market in Los Angeles and Orange counties in California for $500,000 or less fetched their asking price or more during the second quarter, according to statistics compiled by Real Data Strategies.

However, sellers in the most affluent neighborhoods—with homes priced above $750,000—have been forced to shave 5 percent to 10 percent off their asking prices and wait weeks to find a buyer.

Real Data Strategies President Patrick Veling attributes the price reductions to a 40 percent jump in inventory in the two counties over the past year. Analysts are closely watching to determine whether the cuts are seasonal or indicative of the start to a long-term decline in the housing market.

Source: Los Angeles Times (10/20/05); Haddad, Annette

Wow. It is surprising that this was actually published in Realtor Magazine.

1 comment:

  1. In the town of Vernon CT pop. 30,000-17 miles east of Hartford, there are right now about 10 townhouses for sale, priced between 160-175K that have been sitting on the market from 1-3 months-not moving. Plus there are other condo's, mostly apartment conversions priced from 70-105K also just sitting, many for months. It seems at mid summer things just died.Inventory is up to the highest level statewide since 1998, but prices are anywhere from 70-100% higher, with employment and income levels no higher. I do not have to tell what that is a recipe for.