Homes Will Sell If Priced Right; Foreclosures Have Impact

The housing market is difficult to work in, unless the houses are priced right. Houses can go for a lot less than the owners think they are worth, which can be a lot less in areas where the supply of houses is overrun by foreclosures and short sales. These are typically priced 20 percent to 30 percent below the ones being sold by financially stable owners. Nationally, 30 percent of the houses for sale saw lowered prices in June, according to Zillow.com. “People who price their homes to the market are selling them in a reasonable amount of time, but people who cling to 2004 or 2005 prices aren’t,” says Realogy CEO Richard Smith. Oakland, Calif., and San Francisco, Calif., are two markets where foreclosures are taking over the market. Sellers have had to change their thoughts, and in June, 20 percent of the properties for sale in Oakland lowered prices, compared to 15 percent in May. Young professionals from San Francisco are moving to the area because of the low home prices. Additionally, many people are buying foreclosures and fixing them up and reselling them. Those who consider foreclosures and price their homes accordingly have no trouble finding buyers who will sometimes pay above the asking price. Noe Valley in San Francisco is ignoring the trend by selling homes well above the asking price. | Read More