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Prices could plummet, warns bank economist

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Guest | 04 Feb 2014, 07:32 PM Agree 0
  • robert ede | 05 Feb 2014, 11:21 PM Agree 0
    inflammatory headline
  • Markuslababa | 06 Feb 2014, 01:31 PM Agree 0
    So, if I am selling my house, and similar homes have sold in the neighbourhood for $400,000, and my home therefore is worth $400,000, I should list it for $340,000 and lose $60,000 because Jamie Henry said so? That would only make sense if I was insane. If home sellers base their home valuation on similar recent sales, why in the world would they reduce it 15% less? Because of an article on the net? Because of someone's prediction? Because someone got paid to make such a statement? That's just dumb.
  • Robertsmith | 06 Feb 2014, 10:55 PM Agree 0
    They are not saying prices will drop 15% in one shot! but that prices could decline by up to 15%. Not said is "over a period of time". That could be 6 months, 1 year or 2 years.

    If you are considering selling, then you need to take this into consideration when setting your listing price. You you price at "current market price" in a relatively fast moving (downward spiral) market the you risk never selling ...until the price has gone down 5, 10, 15%. You end up, in such a Buyer's market, chasing the market all the way down.

    I have a friend that was in such a situation in California several years ago. He HAD TO SELL because he was moving overseas. His agent advised to price his place, after it sat on the market for a few months, 3-5% below the "current market price", which he did, and it sold within a couple of weeks. Of course, if you have that one of a kind, wow factor gotta have place then you don't have to do that. If your property is one of a hundred (or a thousand, or ten thousand) on the market, and you really want (have to?) sell it, then you need yo seriously consider setting your price below current market price.

    So, on conclusion, these experts are not suggesting you list at 15% below current market price ???just that you may have to settle for that if you chase the market down!
  • David Joseph | 19 Feb 2014, 08:15 PM Agree 0
    This is the same story we have been listening to for 10 years. Doom and Gloom. As long as the interest rates are stable so remains the strength of the market. It doesn't look as though the rates are going anywhere soon, at least not for the next year, so relax, do your job which is to keep up on the numbers and keep your eyes open.

    David Joseph
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