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1 in 5 North Coast homes for sale have cut prices
In Healdsburg, 31% of listings have been cut as buyers in mid and upper price ranges search for value
This Healdsburg home is listed for $995,000, down from the original price of $1,395,000.
KENT PORTER/PDPublished: Thursday, June 24, 2010 at 5:46 p.m.
Last Modified: Thursday, June 24, 2010 at 5:46 p.m.
One in five home sellers on the North Coast have cut their asking price at least once, according to new data from Trulia.com.
Experts say it's another sign of a buyers' market, especially in the middle and upper price ranges.
In Sonoma County, home prices dropped nearly $79,000 on average, or 11 percent of the original price, an indication that the majority of the cuts are on homes priced above $500,000, and often above $1 million.
In Lake County, prices dropped an average $47,000, or 15 percent of the original price. Mendocino County had the deepest cuts, dropping an average $154,000 or 23 percent of the asking price.
National cuts averaged 10 percent.
Twenty-one percent of listed homes in the region have had one or more price cuts, according to data collected at the start of the month. That was similar to the national rate of 22 percent.
The data provides more evidence that buyers have the edge today in the move-up and upper end market.
“Buyers are just very wary of value,” said Brian Connell, a broker/manager at Frank Howard Allen in Santa Rosa. They are taking their time looking over a property, essentially saying, “we're going to make sure it's what we want” and listed at a “fair price.”
Sonoma County median home prices have fallen dramatically since August 2005, when they peaked at $619,000. Last month the median price stood at $362,000.
Of 4,400 houses and condos listed for sale in the three counties on June 1, Trulia found more than 900 that had undergone at last one price reduction. Those numbers don't include foreclosure properties, but do include those under contract with contingencies and properties offered as short sales, or priced for less than the amount owed on the mortgage.
Of the region's sellers, those who live in Healdsburg were most likely to have reduced their listing prices. Nearly one of every three, or 31 percent, had made cuts. Those in Rohnert Park, Sonoma and Cloverdale were close behind at 28 percent. Santa Rosans followed at 27 percent.
Ukiah had the smallest portion, 15 percent, with 18 percent in Cotati and 19 percent in Petaluma.
Agents and brokers suggested that Healdsburg topped the list because it has relatively few starter homes. Instead, its market is predominantly made up of move-up and upper end homes.
“Those are going to be the properties that have price reductions,” said Sally Crain, a broker with Hurd Real Estate in Santa Rosa.
In contrast, agents said, homes priced below $400,000 often draw multiple offers. Price reductions for such homes are less common.
At Realty World Selzer Realty, Ukiah's largest real estate company, owner Richard Selzer said the price data appears correct. Even so, his staff was unsure why Mendocino County sellers would have made the biggest discounts off the original prices.
“We've obviously been hit,” he said, but so have other areas.
Agents and brokers said the data drives home the point that sellers often pay for it in the end if they set too high a price simply in the hope that someone may bite.
“You're priced to sell, or you're priced to sit,” said Stephen Liebling, manager of Coldwell Banker in Sebastopol. “People who've priced their homes competitively in this market make more money.”
Agents said a home gets extra attention when it first hits the market, and is more likely to get noticed if it is priced appropriately. After a few weeks, sellers often must significantly drop the price if they want buyers to take a second look.
Even when comparable sales data abound, sellers often find it difficult to set what seems a low price for homes they have become attached to, the professionals said. That reluctance even affects those in the business.
“If Realtors are trying to sell their own properties, they're the worst,” said Diane Harris, an agent with Frank Howard Allen in Healdsburg. “You cannot be objective about your own property.”
One in five home sellers on the North Coast have cut their asking price at least once, according to new data from Trulia.com.Experts say it's another sign of a buyers' market, especially in the middle and upper price ranges.
In Sonoma County, home prices dropped nearly $79,000 on average, or 11 percent of the original price, an indication that the majority of the cuts are on homes priced above $500,000, and often above $1 million.
In Lake County, prices dropped an average $47,000, or 15 percent of the original price. Mendocino County had the deepest cuts, dropping an average $154,000 or 23 percent of the asking price.
National cuts averaged 10 percent.
Twenty-one percent of listed homes in the region have had one or more price cuts, according to data collected at the start of the month. That was similar to the national rate of 22 percent.
The data provides more evidence that buyers have the edge today in the move-up and upper end market.
“Buyers are just very wary of value,” said Brian Connell, a broker/manager at Frank Howard Allen in Santa Rosa. They are taking their time looking over a property, essentially saying, “we're going to make sure it's what we want” and listed at a “fair price.”
Sonoma County median home prices have fallen dramatically since August 2005, when they peaked at $619,000. Last month the median price stood at $362,000.
Of 4,400 houses and condos listed for sale in the three counties on June 1, Trulia found more than 900 that had undergone at last one price reduction. Those numbers don't include foreclosure properties, but do include those under contract with contingencies and properties offered as short sales, or priced for less than the amount owed on the mortgage.
Of the region's sellers, those who live in Healdsburg were most likely to have reduced their listing prices. Nearly one of every three, or 31 percent, had made cuts. Those in Rohnert Park, Sonoma and Cloverdale were close behind at 28 percent. Santa Rosans followed at 27 percent.
Ukiah had the smallest portion, 15 percent, with 18 percent in Cotati and 19 percent in Petaluma.
Agents and brokers suggested that Healdsburg topped the list because it has relatively few starter homes. Instead, its market is predominantly made up of move-up and upper end homes.
“Those are going to be the properties that have price reductions,” said Sally Crain, a broker with Hurd Real Estate in Santa Rosa.
In contrast, agents said, homes priced below $400,000 often draw multiple offers. Price reductions for such homes are less common.
At Realty World Selzer Realty, Ukiah's largest real estate company, owner Richard Selzer said the price data appears correct. Even so, his staff was unsure why Mendocino County sellers would have made the biggest discounts off the original prices.
“We've obviously been hit,” he said, but so have other areas.
Agents and brokers said the data drives home the point that sellers often pay for it in the end if they set too high a price simply in the hope that someone may bite.
“You're priced to sell, or you're priced to sit,” said Stephen Liebling, manager of Coldwell Banker in Sebastopol. “People who've priced their homes competitively in this market make more money.”
Agents said a home gets extra attention when it first hits the market, and is more likely to get noticed if it is priced appropriately. After a few weeks, sellers often must significantly drop the price if they want buyers to take a second look.
Even when comparable sales data abound, sellers often find it difficult to set what seems a low price for homes they have become attached to, the professionals said. That reluctance even affects those in the business.
“If Realtors are trying to sell their own properties, they're the worst,” said Diane Harris, an agent with Frank Howard Allen in Healdsburg. “You cannot be objective about your own property.”
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