I read an article that states home value is starting to level off. There were more price reductions in active listing in June, up from end of 2016. Great news for buyers! I can’t say we are seeing that trend in North Georgia yet! I think it also indicates that many sellers have over estimated the value of their homes. We have many potential sellers with the mind set their home is worth the top end of the market value. They have not taken into consideration the condition or location of their home. I found this article in the MReport interesting and wanted to share.
Is Home Value Growth Cooling?
In June, a growing number of homes sold for less than they were originally listed, especially at the higher end, according to new research by Zillow.
Zillow reported that about 14 percent of listings across the U.S. had a price cut in June. That’s up from a low of 11.7 percent near the end of 2016. In San Diego, 20 percent of listings had a price cut in June, up from 12 percent a year ago.
The cuts are a sign that after years of juggernaut-level price growth, home value growth could be slowing. The report found that value growth in June slowed in almost half of the 35 largest U.S. metros, most notably in Sacramento and Seattle. Values still rose 8.3 percent over the past year, nationally, but Zillow expects that growth to slow to 6.6 percent by this time next year.
Growth in San Jose, California, Indianapolis, Indiana, and Charlotte, North Carolina are expected to slow the most.
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Are you thinking of selling a home?
As a seller we hope you will take all the facts into consideration before you decide the value of your home. Many sellers are over-pricing their homes even when we give them the statistics showing the value is less. Furthermore, over-pricing keeps buyer’s from wanting to even look at the home which equals less offers. If your home is properly priced it should have offers within the first 30 days of listing. Over-pricing creates more “carrying costs” for the seller (ie: taxes, insurance, payments, maintenance). Contact us and let’s get you a current CMA and determine the true value of your home. Once you have the proper information we can start putting a marketing plan together to get you the highest price in the shortest time.