OCTOBER RISING
Welcome to 2021’s 4th Quarter! For those of you who regularly read this monthly Newsletter, which I personally draft, there is a noticeable pattern of statistics that has been forming since early Summer. While portions of our residential market seem to be boiling over with activity & multiple offers, depending on price range and location, there is a slow transition occurring which experienced agents have recognized.
Optimistic promises back in Spring were quoted when the Economy was reopening, hiring was accelerating, 2-3 million people per day receiving vaccinations and the prevailing belief was that Covid was disappearing into our past. Those promises faded somewhat in mid-summer. The Delta variant changed things significantly and surprised all economic forecasters, including UCLA analysts who just released a report this week reducing its expectations of growth. I’m not doom and gloom, and the fact is --- growth is still forecast, just not as high as previously believed.
Luxury real estate sales are following this trail of news as if they are in lockstep with forecasters. Overpriced properties are now beginning to ripen on the market for months, instead of selling like they did last year. We have 3 good months to sell luxury homes in ’21, and never before in the last 18 months has it been more important to price wisely. Asking more will not get you more. When you become a Seller, you should become a “shopper” for your property and put it through the paces like real Buyers will do as they shop. Not easy, admittedly, because of the sentiment involved. Successful Sellers are the ones who understand how to price strategically attractive, and finely tuned to the market.
All this said, our team just sold a $2M canyon house $500K over its listing price. It achieved above-market value because of the pricing strategy effectiveness. Earlier this summer we sold a $17M luxury Beverly Hills house $500k over its listing price, plus multiple offer, even in that price range. All of this because of strategic pricing. Please call me if I can help you with any pricing discussion point. There is still much life in this marketplace, you simply have to call it forth.
-Ernie
