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Tuesday, June 23, 2009

Want to Sell Your Home.... Reduce the Price

Marketwatch reports (bold mine):

Falling prices boosted sales of pre-owned homes in May to the highest level since October, the National Association of Realtors estimated Tuesday. Existing-home sales rose 2.4% to a seasonally adjusted annual rate of 4.77 million, the trade group said. Sales have risen in three of the past four months, and are down 3.6% in the past year. The sales increase was less than the 4.85 million rate expected by economists surveyed by MarketWatch. The median sales price fell 16.8% in the past year to $173,000 (worse than the 14.9% we saw last month, which was likely just noise), the third largest year-over-year decline on record. Inventories of unsold homes fell 3.5% to 3.80 million, representing a 9.6-month supply at the May sales pace.
The only region which has seen an increase in year over year sales is the West.

Why? As the chart below shows, the median price of a home in the west has dropped considerably in recent months vs. the national average.

Want to sell your home? Lower the price.