Sudden Price Slashing What it Means and Doesn't Mean
Sudden Price Slashing What it Means and Doesn't Mean
Full Video Transcript Below
[00:00:00] Well, good morning, everybody. Alice Lema here. Broker John L. Scott in beautiful Southern Oregon with another edition of the weekly podcast. Welcome back today. We're going to talk about all of the sudden price slashing and what it means and what it doesn't mean because both both are important. But there's a lot of that going on this week, boy, and it's not just here in Southern Oregon, it's nationwide. So we're going to talk about that.
[00:00:21] I want to give you a quick second to like the channel subscribe. If you need to talk to me personally, you can reach out by text or phone (541) 301-7980. Want to give a shout out to Mary. Great to meet you this week, going to get her house on the market pretty soon. Sorry. Can't talk about the details. MLS gets really mad at me if I Blab. So when it gets close let me say something, but until then you're going to love Mary's house. It's obviously beautiful. Okay. Getting that behind us.
[00:00:49] Why all of a sudden price slashing what it means and what it doesn't. So first of all, just want to say, did you see all the price reductions that happened this weekend? It's in all of the neighborhoods and it's an, all of the different price points, and that's why this is noteworthy. I mean, it's one thing to have some big price changes in the luxury market. In fact, we had one price change that was $125,000 price price cut. 125 grand. Boom. So.
[00:01:17] But it's it's another thing to have our, our entry-level homes, cutting their prices by anywhere from 10 to $25,000. If that's a 300 or $400,000 house, that's kind of a big deal. And so it's early in the season for all these price changes to be happening. And because they're happening across the board in multiple counties, multiple price points and it's all happening at the same time. That is a movement in the market. That is the mentality of the sellers adjusting. And we're watching it in real time. Right. Cause that's what we do.
[00:01:52] So the, the reason people are doing it is multifold. I mean, we've got a lot of sellers out there. They've been on the market for anywhere from a few weeks to a few months and they're either tired. They get kind of like a sellers burnout. Or they're super nervous. We had another really horrific week in the world. And but it has an impact on how people feel about buying and selling their homes here, here in Southern Oregon.
[00:02:18] And so. You know, and then you combine that with the increased inflation taking bigger and bigger bites out of people's budget and the federal reserve bank on the news again this week, you know, talking about how they're still probably going to do two more interest rate changes. So that makes sellers really, really nervous.
[00:02:41] And it also Makes them feel trapped, like they can't move forward. So all these big price changes are in reaction to what's going on in the world. They probably started too high, anyway, let's just say it. And there's a lot of people out there that do that and it's okay. I'm not picking on anybody. You know, there's nothing wrong with, with trying higher prices.
[00:03:02] And if it doesn't work, you can make the change. But I'll tell you something, if you're going on the market right now, and it is still a good time because we still have more buyers than sellers. As long as we have more buyers and sellers, it's still a good market, you know, to sell your house. But you want to come on in the middle of of the price point of your area. You don't want to go to the top anymore. It's not that market. So it's not a bad thing to have all these price changes. It's the market adjusting.
[00:03:28] It's actually a good thing. It's a dose of reality for everybody and it kind of reinvigorates the buyers. The buyers are so tired and they've just been beat up and beat down for months and months. And finally, this is a little breath of fresh air in their favor. And it gives them renewed energy to get out there and house hunt and write some offers. So it actually has a good impact on the sellers, not just reducing the prices for the money. But it really infuses more energy and excitement and activity into those listings.
[00:04:01] And if you're coming on the market right now, good for you. Yay. Thank you. Thank you for listing your house. And I think you're going to be going into that upswing and that more optimistic energy from the buyers. Also want to say that even though the market is adjusting, it's still that ironic mix of good time to buy and good time to sell.
[00:04:23] And it's still a good time to buy because the interest rates are not horrendous. A lot of us older people, you know, we still think five and 6%. We can manage that. But but we have to wait for the emotion and the mental anguish and just the number crunching to kind of finish up. But I think that's happened.
[00:04:41] I think when you see all the sellers across the board, kind of do a group price reduction, like as, as an entity, all the sellers at the same time. Boom. That's the market adjusting and that's saying, okay, I'm being realistic. I want to sell, here we go. There was also a lot of people who went off the market and that was them going if I can't get my number I'm out.
[00:05:04] And that's okay too, but I'm really, really pleased to see this adjustment. I, I wasn't expecting it to all happen in one week and I'm sure there'll be more, but it, but it was kind of a nice definitive moment in the market where it's okay. We have adjusted we're moving forward.
[00:05:20] We understand the new The new deal with the interest rates and the inflation, and we still want to move. And that's good because in spite of everything that's going on around us, our homes are ever more important and our families and what we do in our homes. And, and if you need more room, let's go get you more room.
[00:05:39] And if you need less room, let's sell the one you're in and let's get you less room. But the idea is be happy, be happy where you're at. So if you're not happy where you're at, call me 541-301-7980 or send me a text and let's find out what it's going to take to make this happen so that you have what you want.
[00:05:59] And sometimes that means having something that's less expensive. You know, one of the side effects of all this inflation is, is people are really worried about their money stuff. So sometimes if you have a really big, beautiful home and you're worried about the mortgage and you just want to downsize, or you just don't need that much room, that can be a real breath of fresh air too.
[00:06:17] So regardless of what your real estate future is, just know that we just had a big moment this week, where everybody together went, oh, I'm overpriced. Okay, let's change that. Or they said, oh, I'm overpriced. And that is a good thing to have happen in our market. So give me a call, give me a text. If there's anything I can do to help you otherwise enjoy the beautiful Memorial weekend.
[00:06:41] We'll see you again next week. Bye now.