Price Reductions Surge as Sellers Over Estimate the Market

Home sellers, particularly those who bought during the COVID-19 pandemic housing boom, have unrealistic price expectations due to past market conditions. While these sellers often still have significant equity, overpricing based on wishful thinking or minor cosmetic updates can lead to listings becoming "stale," deterring buyers and ultimately forcing sellers to chase the market down with price reductions. Real estate agents emphasize the importance of setting a realistic price from the start, even if it means turning down clients with unrealistic expectations, as overpricing can significantly prolong the selling process and potentially result in a lower final sale price. The increasing number of stale listings and anecdotes from frustrated sellers highlight the challenges of adjusting to the current market.