Price Cuts...What to Know
Price cuts are turning up everywhere right now, and they read very differently depending on which side of the deal you’re on.
Sellers tend to worry a cut means walking away with less than they hoped...Sometimes that’s true, but more often it just means the market moved faster than the listing did.
Buyers, for their part, often assume a cut means something’s wrong with the house...Most of the time, that’s not it.
This is what's actually driving all those price cuts, and why it matters no matter which side of the deal you're on.
42% of Homes for Sale Are Now Carrying a Price Cut
According to HousingWire Data, the share of sellers cutting their asking price has climbed every month for 7 straight months (see chart below):
Today, more than 4 in 10 active listings have had at least 1 price cut, and the typical seller is cutting about $17,560 off their original number.
Here’s why that’s happening. With rates still elevated and more homes to choose from, buyers can afford to wait for the right number. So, sellers who don’t start there often end up adjusting anyway.
What does that mean for you?
If you're selling, this isn’t a red flag. But it is a sign that pricing it right from day 1 is your best bet. Just know that the market's been shifting fast enough this year that sometimes even a well-priced house can fall behind within a matter of weeks. If that happens to you, dropping your price to catch up to where pricing actually stands today tends to bring in more buyers and helps you sell closer to true market value.
If you're buying, it's easy to assume a price cut means something's wrong with the house. But with cuts happening on more than 4 in 10 homes right now, the reality is sellers are just catching up to where the market already is. And with affordability still tight, that's exactly the kind of opening you need to get a better deal.
Why Sellers Are Adjusting Faster than Before
HousingWire Data also shows list prices are trending down nationally. That’s often a sign sellers are pricing more realistically from the start instead of listing high and getting stuck cutting later. List prices have fallen about $26,000 from last year's peak.
Some of that decline is seasonal, since list prices typically soften each winter before rebounding in the spring. So, expect asking prices to keep drifting a little lower before turning back around (see chart below):
Jake Krimmel, Senior Economist at Realtor.com, explains:
“That is good news for buyers, who are seeing lower asking prices and more room to negotiate, but it is also good news for sellers: Pricing to today’s demand is helping homes move and keeping more transactions alive in a high-rate environment.”
Translation – with rates still elevated, buyers can only stretch so far. Sellers who meet them where they are instead of holding out for unrealistic prices are the ones actually getting to closing. And doing that up front is always better than chasing the market later.
Buyers, You’ve Got Room To Negotiate Again
At the same time, Redfin data shows sellers now outnumber buyers by about 58%, the widest gap on record (see chart below):
That changes the power dynamics of the market – and impacts how homeowners should price their house. Nationally, about 7 in 10 markets now favor buyers or are trending that way.
For sellers, that means standing out matters as much as pricing. With more homes to choose from, buyers are comparing you directly against the competition. So, a little flexibility, like covering closing costs or being open on timing, can be what gets your house picked over another.
For buyers, it means more room to ask for a lower price, help with closing costs, repairs after inspection, or some combination of all 3. That’s especially true for homes that have already sat for weeks, where sellers are often the most willing to talk.
Bottom Line
Price cuts are a normal part of today’s housing market, and both buyers and sellers can use them to their advantage. Let's look at what's actually happening with prices in your neighborhood, so you know exactly where you stand before you list or make an offer.
Today's Active Homes For Sale
In Escambia & Santa Rosa Counties
2802 v (7)
Low $37,000 - High $9,900,000
Above $600,000
543 ^ (5)
$500,000 - $599,999
194 v (2)
$400,000 - $499,999
380 v (10)
$300,000 - $399,999
771 v (1)
$200,000 - $299,999
603 (0)
$100,000 - $199,999
274 (0)
Under $99,999
37 ^ (1)
RED is UP Black Remained the Same Green is DOWN
Current Mortgage Rate
30 YR Fixed 7.54% (-.06%) 15 YR Fixed 7.18% (-.04%)
Current Realtor Membership
3113 Agents (Pensacola Assioation of Realtors)
Current Mortgage Rates
Florida
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Alabama
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Think You're Smart?
Done...What Most Religions Don't Tell You About The Bible
Cary Schmidt's Introduction of Done
Don't Worry About Dying...You Will Live Forever...
It's All About Location, Location, Location!
God gave His only begotten Son Jesus Christ for us to be saved from this sinful world. Time is at Hand and while it is not too late, secure your salvation.
If you don’t know how to secure salvation, this simple easy to follow “ABCs of Salvation” will guide you on how to accept genuinely Jesus Christ as your Lord and personal Savior to secure salvation for you to surely go to Heaven.
But before going through the steps you might ask: Why do I need to Secure Salvation? And why do I need to go to heaven? This because:
You might be wealthy but it cannot be exchanged for your soul.
Whatever you have here on earth, they are nothing and there is no forever on Earth.
Kingdom of Heaven is more valuable than anything else.
It is appointed that we will die physicaly and we will be judged (Hebrews 9:27).
You only have two destinations: Heaven or Hell
Hell has no exit and Heaven has only one door – Jesus
So how to secure salvation?
A – ADMIT that you are a Sinner
B – BELIEVE on the Lord Jesus Christ
C – CONFESS with your mouth
D – DEPART from evil
A – ADMIT that you are a Sinner
We all have sinned.
17 For if by one man’s offence death reigned by one; much more they which receive abundance of grace and of the gift of righteousness shall reign in life by one, Jesus Christ.) 18 Therefore as by the offence of one judgment came upon all men to condemnation; even so by the righteousness of one the free gift came upon all men unto justification of life.
19 For as by one man’s disobedience many were made sinners, so by the obedience of one shall many be made righteous.
20 Moreover the law entered, that the offence might abound. But where sin abounded, grace did much more abound:
21That as sin hath reigned unto death, even so might grace reign through righteousness unto eternal life by Jesus Christ our Lord.
And no matter how you try to be good, you will still fail.
For all have sinned, and come short of the glory of God;Romans 3:23 KJV
You are still unclean.
But we are all as an unclean thing, and all our righteousnesses are as filthy rags; and we all do fade as a leaf; and our iniquities, like the wind, have taken us away.Isaiah 64:6 KJV
B – BELIEVE on the Lord Jesus Christ
God gave His only begotten Son Jesus Christ to save us. And through His blood, our sins washed away.
For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.John 3:16 KJV
Only by His grace and not by works.
8 For by grace are ye saved through faith; and that not of yourselves: it is the gift of God: 9 Not of works, lest any man should boast. 10 For we are his workmanship, created in Christ Jesus unto good works, which God hath before ordained that we should walk in them.Ephesians 2:8-10 KJV
There is no other way but only through Jesus Christ alone.
Jesus saith unto him, I am the way, the truth, and the life: no man cometh unto the Father, but by me.John 14:6 KJV
God commended His love toward us.
But God commendeth his love toward us, in that, while we were yet sinners, Christ died for us.Romans 5:8 KJV
If we have Jesus Christ living in us, we will live eternally.
He that hath the Son hath life; and he that hath not the Son of God hath not life.1 John 5:12 KJV
In the power of our Lord Jesus Christ.For I verily, as absent in body, but present in spirit, have judged already, as though I were present, concerning him that hath so done this deed, In the name of our Lord Jesus Christ, when ye are gathered together, and my spirit, with the power of our Lord Jesus Christ, To deliver such an one unto Satan for the destruction of the flesh, that the spirit may be saved in the day of the Lord Jesus.1 Corinthians 5:3-5 KJV
By the blood of our Savior Jesus Christ
Not by works of righteousness which we have done, but according to his mercy he saved us, by the washing of regeneration, and renewing of the Holy Ghost; Which he shed on us abundantly through Jesus Christ our Saviour; That being justified by his grace, we should be made heirs according to the hope of eternal life.Titus 3:5-7 KJV
C – CONFESS with your mouth
Now that you accepted that you are a sinner and believe in the Lord Jesus Christ, confess with your mouth your sins and that you believe in Him. Let Him come to you and accept Him as your Lord and personal Savior.
If we confess our sins, he is faithful and just to forgive us our sins, and to cleanse us from all unrighteousness.1 John 1:9 KJV
9 That if thou shalt confess with thy mouth the Lord Jesus, and shalt believe in thine heart that God hath raised him from the dead, thou shalt be saved. 10 For with the heart man believeth unto righteousness; and with the mouth confession is made unto salvation.11 For the scripture saith, Whosoever believeth on him shall not be ashamed. Romans 10:9-11 KJV
Now do the Sinner’s Prayer:
Holy, thoughtful, gracious, and Heavenly Father, I recognize and acknowledge I am a miscreant not deserving of your grace and I ask forgiveness of my sins. I know your son is the truth the light and the way, I give myself freely to His control and welcome him into my heart. I ask you to walk with me and guide me, teach me your way and your truth. Thank you for the gift of your Son’s sacrifice on the cross that I may live. Thank you for your forgiveness and for accepting me as your child. Amen.
Now that you are saved and you have Jesus Christ living in you, you should not stop there. What is next? Follow Him, His words, submit yourself, and don’t forget to
D – DEPART from evil
This is not part of the step to secure salvation but it is a way of proving yourself that you are now truly of Christ. Forget your past and follow Him.
Depart from evil, and do good; seek peace, and pursue it.Psalms 34:14 KJV
Therefore if any man be in Christ, he is a new creature: old things are passed away; behold, all things are become new.2 Corinthians 5:17 KJV
(For he saith, I have heard thee in a time accepted, and in the day of salvation have I succoured thee: behold, now is the accepted time; behold, now is the day of salvation.) 2 Corinthians 6:2 KJV
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This article provides information and opinions but is not meant as investment advice. Skip Geiser LLC, Charles "Skip" Geiser, Plum Tree Real Estate Marketing or Rob Brooks Realty does not assure the accuracy or completeness of the information or opinions presented here. It is important to conduct your own research, due diligence, and seek professional advice before making any investment decisions. Skip Geiser LLC, Charles "Skip" Geiser, Plum Tree Real Estate Marketing or Rob Brooks Realty is not responsible for any loss or damage resulting from relying on the information or opinions in this article
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