A week or so ago I pointed out that depreciation in Kootenai County, for single family residential properties, was -6.2% from October 1st, 2009 to September 30, 2010.
Recently, FHFA.gov came out with their quarterly Housing Price Index report providing statistical information for states and nearly 300+ market areas.
The Coeur d’Alene MSA showed a depreciation of -10.08% over the course of the year. Since mid-August I’ve been saying we are depreciating at an average of 1.3% – 1.5%. Since other agents look at me like I’ve grown 2 heads, it’s refreshing to have additional facts to support my statement. FHFA.gov records our 3rd quarter depreciation at -4.45% which is approximately -1.48% each month. Here’s the Coeur d’Alene MSA ranking.
So what’s the reality? The reality is, we are not at the bottom in the North Idaho area. The reality is sellers can not over-price their homes, by even 1% of market value. The reality is that sellers need to be pro-active and reduce their asking prices slightly ahead of the depreciation – that means that every 2 weeks, sellers should be reducing the price of their property by at least .75%. This will get their home sold at a higher price than if they just leave it at the original listing price for several months.
Getting it sold depends solely on price and exposure right now. However, price carries greater weight than exposure. It doesn’t matter how much exposure a home gets, if it’s even 1% over priced, it won’t sell. Buyers have a great selection and don’t need to look at over-priced properties (and they aren’t wasting their time on over-priced properties).
So, stay ahead of the game – price your home at or below SOLD market value (not listed or pending) and schedule price reductions of at least .75% every 2 weeks until you get it sold.
Questions? Comment below, email or call us.