Your Home on a Diet

Every weekend I spend about an hour reviewing real estate market statistics in Southeastern Connecticut.  I use the information I find to prepare a report that I email to my current sellers, future sellers and anyone who has expressed an interest in receiving my weekly update.  The actual report focuses on activity in Ledyard and includes a list of any new listings on the market, pending sales and closed transactions for the week. I've been preparing this report for the past 2 years. While I initially started this market update to keep my clients informed, I soon realized it gave me a much better understanding of current market conditions. 

A few weekends ago, I decided to include a new statistic in the report - number of price reductions for the week.  For example, this past week in Ledyard, 14 homes, about 10% of current inventory posted a price reduction.  Curious about that number, I took a look around Southeastern CT to see if that was a trend in the neighboring towns of Groton, Stonington, North Stonington, Montville, Norwich, East Lyme, Waterford and New London.  In the past 14 days, around 260 homes, about 20% of the current inventory in those towns posted price reductions. 

Does that mean prices are dropping in Southeastern, CT?  Statistics say no, as the median price has continued to increase slightly over the past two years through most of the region. What it does mean is that many sellers continue to price their homes too high and eventually have to adjust accordingly.  Bloated prices will keep inventory in the area artifically high until sellers realize their homes are not increasing at the rapid pace of year's past. While prices have not decreased in the area, the number of home sales has and many of these overpriced homes end up coming off the market as sellers are forced to make other plans.

If your home has been on the market for over 60 days, it may be time to consider putting your home on a diet.  Your reduction plan should include consultation with your real estate professional about current market statistics.