Just how much has the real estate market cooled off?
Today, I discovered just how uncomfortably quiet the agencies have become: They are rolling out a new promotional device: Real Estate discounts — your home, now on sale!
Its detailed in a fascinating letter from a major national Residential Brokerage chain:
Price Improvement Event
"In our continued efforts to expose your home to as many potential buyers possible and get your home sold in the shortest amount of time, we are wrtapping up International Open House Month with our Price Improvement Event.
This 10 Day Sale Event will include mailings, website marketing , open houses, raffles, mortgage pre-qualifications abd exciting newspaper, television and radio advertisements.
You can be part of this exciting event by improving (reducing) the current asking price of your home by a minimum of 2% beginning April 26, 2006 (you will have the option to bring the price back up at the conclusion of the sale on May 8) . . ."
Consider these factoids:
- Mortgage rates are now hitting 4-year highs;
- 10 year now yielding about ~5%;
- The Fed is not showing any signs of slowing;
If a house won’t sell after a two percent "temporary" price cut, do ya really think they will be bringing prices back up?
Expect to see ALOT more than 2% come off the asking prices of homes — especially as rates continue to tighten.