Home Sellers Need to Chop Prices Even Further Than They Realize

For Sale homeIf you congratulated yourself for buying a home after the housing bubble burst, but now are having trouble selling it, the answer is probably in the price. Current sellers who bought their homes in 2007 or later have overpriced their homes by more than 14%, according to an analysis of listings by Zillow.com.

The analysis also found that buyers who purchased a home before 2002, have their homes priced 11.6% over market value. Buyers who bought between 2002 and 2006 have their homes listed 9.3% above current values.

"Post-bubble buyers seem to believe they escaped the worst of the housing recession, as evidenced by how they price their homes today," said Zillow chief economist Stan Humphries. "But 2006 was just the beginning of the housing recession, and it is continuing in earnest to this day. That means that even people who bought after the bubble burst need to break out the pencil and paper and do serious research into what has happened in their market since they first bought their home, whether it was four years ago or six months ago."

Overpriced inventory is contributing to the stagnant housing market. Sales of previously owned U.S. homes hit a six-month low in May.

"When you see so much inventory, the problem is in the price," Ko Wang, director of the real estate program at Baruch College, told DailyFinance. "You can sell any property, as long as you have a price."



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Keishypoo

The market sucks for sellers, but real estate investors are in a prime spot to really get things done.
http://propertymortgageinvestment.com/discount-investment-property-%E2%80%93-why-people-want-these-and-where-to-find-one

July 29 2011 at 11:37 AM Report abuse rate up rate down Reply
cherrybls6

overpriced houses include older home and newly built ones. it just almost makes sense to rent. every few years the housing market crashes and thousands of homes go into foreclosure.

July 19 2011 at 1:26 PM Report abuse rate up rate down Reply
Fifth Green

The "Realtors" are the pushers of the dream.. same as selling drugs..

July 19 2011 at 1:21 PM Report abuse rate up rate down Reply
Greg

If we assume that some post-bubble buyers bought a house within their means and bought a house to live in and enjoy, then they didn't make a bad decision. In fact, I'd say anyone who bought within their means at any time, and bought a house that they loved, made the right decision. Living happily within one's means is always a good idea.

July 19 2011 at 12:26 PM Report abuse rate up rate down Reply
jkennedy806

WHY IS IT THAT HOME SELLERS HAVE TO CHOP PRICES EVEN FURTHER -- HOW'S THIS HEADLINE? WALL STREET BANKSTER GOONS HAVE HEADS CHOPPED OFF FURTHER MORE, AMERICAN'S ARE TIRED OF BEING SLAVES TO A CORRUPT GOVERNMENT AND A FIAT DOLLAR, AND A BANKING INDUSTRY THAT STEALS WITH THE PEN. p.s. mIKE GOT GOLD have some bullets??? to protect your gold baby --
If you are foreclosed upon do not MOVE, STAY IN YOUR HOUSE ask for a recission from your local bankster -- It is now known that almost 80% of all loans that are underwater were flipped diced chopped up processed as CDO's. If you are a BofAmerican customer ask for your loan. Bof A destroyed all notes to hide evidence especially if you have a CountryWide. RISE UP AMERICA THE BANKSTERS AND THE GOVERNMENT ARE TAKING AWAY OUR HOMES THEY SHOULD NOT BE ALLOWED TOO THEY ARE MAKING us VICTIMS IN OUR OWN land.

July 18 2011 at 6:57 PM Report abuse +1 rate up rate down Reply
safety man

I owe the Bank of America Two Hundred and Twenty Thousand Dollars($220.000) on a Home Equity Loan and I have a Balance of Ninty One Thousand Dollars ($91,000) on my First TD....I am paying $500.00 Interest Only to Bof A and
$1,350.00 P&I for my first TD at 4.8% fixed and every month I see a $1000 coming off the Balance.....
I am retired and live on a fixed income.
How can I get away from paying $1,850.00 a month? I do not want to pay thousands of dollars in costs for a Reverse Mortgage....To Re-Finance will only lower my payment alittle bit..
If you are a Finance Wizard please e-mail me....Thank you, .RJWSAFETY@AOL.COM

July 18 2011 at 2:13 PM Report abuse rate up rate down Reply
1 reply to safety man's comment
evd10

"How can I get away from paying $1,850.00 a month? "...I'm not a finance wizard, but you don't need one to solve your problem. Sell the house, pay off your mortgages or just walk away. Problem solved.

July 18 2011 at 2:25 PM Report abuse rate up rate down Reply
Pamela Lieber

.."the market has cooled a little bit' HAHAHAHAHAHA!
What a crock!

July 18 2011 at 1:29 PM Report abuse rate up rate down Reply
donut999

What is generally not understood is how the distressed property that is moving is dragging down everything around it. Price range in your neighborhood means little. Matters little If a distressed home in a $200,000 neighborhood sells for $155,000 vs a home in a $400,000 neighborhood sells for $300,000. Appraisals forward on the remaining homes take a hit. Appraisers can no longer ignore distressed property sales when comparing properties. Adjustments can be made for condition and defects, but assume for a minute the 2 above were in pretty good condition. Since most potential buyers do not have much of a down payment, when the appraisal comes in after offer, the deals fall through. Meantime, home owners who may have had a bit of equity in their homes this time last year now find themselves breakeven and stuck. In another year, they will find themselves
under water. Ugly whirlpool effect here. So housing does not move, and the turnover of housing is one of the single biggest driver of the economy in good times or bad. We are in deep doo doo.

July 18 2011 at 9:16 AM Report abuse rate up rate down Reply
goldengolfball

I purchased a house in Michigan in 2006 for $259,000 due to being relocated due to my job. I retired in 2009 and to get out of this God forsaken state I had to sell it for $176,000 and was glad to get it, if this house hadn't sold when it did and I was still in it I don't think I could get more than $133,000 for it now. I had to take the hit while others just walk away, I am not sure why we have to sign all the paper work if you can just walk away when things get tough. There are so many people that made purchases that were so far over there budget they knew they couldn't make it, but just because a bank said yea you can purchase this with nothing down they had nothing to lose. I was glad to leave Michigan but I think what the banking industry did to this country was criminal and not one served a day in jail, worse yet I think they just picked up there 10 million dollar bonus what a world.

July 18 2011 at 8:11 AM Report abuse rate up rate down Reply
2 replies to goldengolfball's comment
donut999

Wow, and there goes part of your retirement. To take the hit without going down, you must have major equity which represents retirement money when you downsize.

July 18 2011 at 9:18 AM Report abuse rate up rate down Reply
Greg

Golden, you're right, a lot of peolple made their own decision to buy way above their price range. But you didn't, you assumed responsibility for your own decision, and you took action by selling your home and absorbing the loss. Congratulations! Everyone should take responsibility for their own decisions. No bank, nowhere, held a gun to anyone's head and made them sign a loan. (We all make financial decisions and some turn out to be good and some not so good. But hindsight is always 20/20, and most of us are just struggling along trying to make the best decisions possible.)

July 19 2011 at 12:23 PM Report abuse rate up rate down Reply
delgadoproc

People just dont see the big picture we are screwed why governmentsold us down river and it has been for years how do we save our selves 1) buy american 2) we need to make american we need factories to produce what we need 3)get rid of liars in politics if they make promises and they dont do it in the begining impeach them get them out of office look at obama all lies we need people not lobbiest to make a difference.this country did well when mom and pop stores and business survived now its time no more bail outs for big business. 4) no more hand outs to other countries only support United states they do not appreciate anything any way every one hates America get rid of the pain in the necks.

July 17 2011 at 7:26 PM Report abuse +2 rate up rate down Reply