Nervous home sellers finally threw in the towel–and the kitchen sink–last month, lowering the prices they'll accept to sell their houses, the first time they've done so in 11 years.
Sales prices for existing homes fell by 1.7 percent from the year-ago period to $225,000, according to data released today by the National Association of Realtors. That's the biggest percentage decline since the fall of 1990, when the country was falling into a nasty recession and the housing market was reeling from a savings-and-loan scandal.
It's been rumored to happen for quite a while now, and, like all good investments, many thought the boom would never end. But, predictably, it did. There's no doubt: most everyone who has recently purchased a home is upside down in it and will be for a while. However, if you're currrently home shopping, congratulations! For the most part, you'll be able to name your price within reason, especially on those McMansions in new or recently-built suburban developments (in 'boom' neighborhoods with undeveloped infrastructure around them).
I enjoy watching the real estate market, and I've seen it locally, too. Sellers are finally giving up on getting the per-square-foot amount that their neighbors did last year (or have taken their homes off the market entirely).