Over the past month, we’ve seen several buyers lose deals based on their aversion to paying close to full asking price. Understandably, in this environment, the idea of paying full ask may seem absurd, and many buyers feel like they’re chasing the market. Further, recent headlines of surging contracts in the third quarter, coupled with the wealth effect produced by a robust equity market, are leaving many sellers less willing to negotiate. This is particularly the case if they feel they’ve priced their properties to sell (20-30%+ off peak pricing); they’re welcoming the traditionally voluminous sales season of the fall to kick in.
Should open house traffic continue its upward trajectory and stock markets maintain their momentum (see past bear market stock trends)… well, we won’t know what to anticipate. Either buyers will have to yield and actually adjust to the market or transactions may seriously stall.
