Sellers forced to cut price or wait out market

A new report indicates that fewer relocating families are willing to budge on their asking prices despite weak homebuyer demand.

Sellers are having a hard time coming to terms with buyers on home prices, instead preferring to wait out the weak housing market, according to a report from Campbell Surveys. Fewer people were moving into newly-bought homes in August, said the report, with Campbell's first-time homebuyer traffic index down to 29.3 last month from 32.5 in July. Several real estate agents across the country told the report that they've noticed less buyer interest, forcing their clients to either postpone moving plans or succumb to a lower offer.

"It's like we hit a brick wall," one broker in Indiana told the survey. "The market has almost come to a standstill. First part of the year was great and we actually saw a slight increase in home values. Now listings are reducing their prices - if we can even get an offer, it's a low offer."

Price reductions are becoming a common occurrence nationwide as frustrated sellers look to get their moving plans in gear. Trulia.com reported that price reductions on U.S. home listings increased to a record 26 percent in August - the third consecutive month with rising price reductions.
 

More News