SEATTLE--(BUSINESS WIRE)--In six major cities along the West Coast, home sales have fallen more than 12 percent since last year despite a more than 22 percent increase in the number of homes for sale, according to a special report from Redfin (www.redfin.com), the full-service real estate brokerage. The Sunny Slump Report explains that rising prices are drawing more sellers into the market, while also pushing homebuyers and investors to the sidelines in Phoenix and in the California cities of Los Angeles, Riverside, Sacramento, San Diego and Ventura.
While home price growth in these markets has decelerated for nine months, prices continue to post double-digit annual gains in five out of six markets, resulting in decreased affordability for investors and buyers alike. Another sign of cooling in these cities is the erosion of seller control. Five out of six of these markets are seeing home sellers reduce their prices more often this spring than last year.
Percentage of Homes For Sale With A Drop in Price, March 2014
|Market||March 2014||March 2013|
|San Diego, CA||32.8%||24.9%|
|Los Angeles, CA||26.6%||19.5%|
This uptick in price drops shows how important it is to price your home appropriately, says Redfin agent Eric Tan. “Pricing a home high and eventually having to reduce the price is rarely a good option for home sellers. Buyers often interpret a price drop as a sign there is something wrong with the home, leading some to negotiate even more aggressively or lose interest altogether.”
Homes that are priced correctly sell faster, and many markets across the nation are seeing homes sell quickly as the spring selling season gets underway, which Redfin outlines in its latest Fastest Markets Report. Across 20 metro areas, market speed increased in March, with the median time of a home on the market falling from 40 days in February 2014 to 32 days in March 2014. That’s also three days faster than last year’s 35 days. The hottest homes drove the acceleration, as 29.8 percent of homes went under contract within two weeks of their market debut, up from 26.8 percent in February and just slightly below the 30.5 percent rate seen last year, reports Redfin.
To read the full Fastest Markets and Sunny Slump reports, please visit http://www.redfin.com/research/reports.
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Redfin (www.redfin.com) is a technology-powered real estate broker that represents people buying and selling homes. Founded and run by technologists, Redfin has a team of experienced, full-service real estate agents who are advocates, not salespeople, earning customer-satisfaction bonuses, not commissions. Redfin.com features all the broker-listed homes for sale, as well as for-sale-by-owner properties that don't pay brokers a commission. Redfin also offers online tools that make the entire process of buying or selling a home easier and more fun. The company serves 22 U.S. markets and has closed more than $13 billion in home sales. In 2012, Redfin was named one of The DIGITAL 100: World's Most Valuable Private Tech Companies by Business Insider.