Despite the all out economic free fall that we are in, every once in a while, there’s a spot of good news. Nationally, pending home sales increased 7.4% from July to August, according to the National Association of Realtors (NAR). Furthermore, the NAR projects sales of existing homes to rise next year in addition to a 2-3% increase in home prices. Locally, the NWMLS reports Pending Sales up 4.1% from Year Ago, Total Inventory Unchanged, while Seattle Bubble recaps King County SFH pendings to be up 15% from same time last year.
Thank you also, readers, for giving some hope. Last week, I asked whether or not homesellers out there are continuing to see action, either in actual offers and sales or even in plain, old, walk through traffic. Well, I’m encouraged to hear that some of you report recent sales, and it doesn’t even scare me that most of you mention the words “price drops” in the same breath. Hey, I understand basic economics–heck, lower your price enough, and anything will sell.
However, this has me wondering even more about exactly how much of an impact does a price drop make in attracting buyers. In what seems like an economic eternity ago, I asked sellers, Is a Low Ball Better Than a No Ball? Today, I pose the flip side of this question to buyers–would the listing price of a home actually prevent you from making an offer? I’m speaking within reason, of course, but for the purposes of this hypothetical, would a listing price prevent you from making an offer 5% below? 10% below? Or do you really need to see that price drop before you’ll make the offer?