In July, there were 18 new (detached) listings. Out of these, 13 had price reductions as a result of falling out contract but mostly because the original prices had not attracted offers. As of August 20, 8 of these are under contract, but 10 are still waiting to get under contract.
A few months ago, with limited inventory and high demand, properties were flying off the shelf so fast, price reductions were not heard of. For example, I have never closed a property as fast as this one: I entered my listing at 2745 Iliff St on 6/19 at $849,500 and closed it exactly 10 days later at 875K. Cash buyer waived everything and both parties walked away thrilled and ready to enjoy the rest of their summer. Also my listing at 3980 Greenbriar Blvd, which started on 6/25 at 799K, went under contract 4 days later and closed on 7/31 for 825K. Again, both parties were happy!
So what’s going on? Realtors are scratching their heads. August is typically a slow month since, by that time, families have secured their new home in the school neighborhood of their choice and go on vacation before school starts. But is this subtle slow-down in the market seasonal or is it a slight market re-adjustment?
I think it’s both. But I venture to say that after having heard, since the beginning of spring, their neighbors boasting “Can you believe I received 10 offers in 3 days, plus my buyer came with all cash, waiving everything, and paid 10% over asking?!!!”, some July sellers may have become overly optimistic and missed the crest in the summer wave.
For example, and in no particular order:
2765 Juilliard St, a fixer in Rolling Hills, came on the market on 7/8 at 915K, still active 44 days later at 849K after 2 price reductions.
1050 Toedtli Dr, started on 7/9 at 750K, got reduced twice, and is still active at 650K 43 days later.
2755 Juilliard St came on the market at $1,395,000 on 7/15, was reduced to $1,325,000 28 days later, and shows active 37 days into the market.
1900 Dartmouth Ave started on 7/15 at $1,050,000, went under contract 5 days later but fell out contract 4 days after that, was reduced to $997,500 on 8/10, and is still available.
2461 Briarwood Dr in Devil’s Thumb, entered the market at 950K on 7/23 and was reduced by merely $2,300 to $947,700, is still active 30 days later.
3900 Carlock Dr, entered the market at 625K on 7/27, was reduced to $599,900 on 8/14, and is still waiting to get under contract.
1030 Lehigh St, started at 625K on 7/23, went under contract in 5 days but buyers walked away 6 days later, was reduced to $599,900 on 8/10 and is still active 30 days from MLS entry.
2710 Carnegie Dr went under contract for above 700K before MLS entry but buyers walked away as better-priced listings in better condition were popping up. Came up in the MLS on 7/29 for 695K, was reduced to 675K on 8/7 and again to 650K on 8/19, and still waiting.
3835 Carlock Dr is also still sitting active after a 25K price reduction and falling out of contract 11 days after MLS entry, but that listing has been sitting since June, not July as above.
In contrast, this success story:
550 Hartford Dr, priced at $699,000 on 7/7, under contract in 3 days, and closing on 8/11 cash and 61K over asking. This property was priced aggressively to start with, with no doubt the goal to attract multiple offers.
How many new listings in July?: 18
How many solds/closed in July?: 7
How many new listings in August?: 5
How many houses sold/closed (as of 8/20) in August?: 3
(Please note that houses closing in a certain month were likely new listings a month or two prior, so absorption rate is not to be calculated using the same month.)
What’s the picture today? More listings in August than any other month this year, 30 to be exact, and out of these only 9 are under contract. That’s 21 left to choose from! Granted they range from 565K to $3,295,000, but while it’s not out-of-the norm to see the 7 highest-priced still available for sale, it’s unusual to see the first 8 lowest-priced waiting to go under contract.
What does this all mean? Sellers, prices can’t continue to climb at the same incline and buyers have more to choose from. Not only do sellers need to pay attention to their competition price-wise, they also need to spend some energy, time and money preparing and staging their homes. In exchange for paying premiums, Buyers are wanting a house in good condition and need to be wowed.
*Not all properties were listed and/or sold by 8z Real Estate. This data is based on content supplied by REcolorado, IRES, PPAR, and/or MLSListings. Content is deemed reliable but not guaranteed. Content may not reflect all real estate activity in the market.