Home sellers worry they waited too long to sell. Not until prices fall they did not. The ‘Wave’ prices are still there.

Posted by John Reed on Aug 08, 2022

Yet another WSJ illogical, anti-home article, this one by Veronica Dagher. Apparently, the Journal haa a required course on anti-logic and “stick to the anti-home” narrative for all new hires to remain consistent.

The headline today is “Home Sellers Worry They Missed Wave.”

Did home prices fall? No

So what exactly have they missed? The article’s evidence is that nowadays sellers often have to cut their asking price more than once to sell. Did they cut it below what selling prices were six months ago? No.

So they have not “missed out” on even one penny of equity.

The article says the sellers may have to sell for “less than they feel it is worth.” But that is not less than the “wave” pushed it up to is it? If the wave pushed your home value to, say, $450,000, and you now sell for $450,000, you did not miss anything. It does not matter whether you listed for $430,000 and multiple bidders pushed it up to $450,000 or you listed it for $475,000 and had to cut the price down to $450,000. $450,000 is $450,000. All you missed was additional appreciation you hoped for.

But the idea of the Journal article is that the sellers now feel they should have sold a year ago. For $430,000? Like it’s it better to sell for $450,000 after listing for less and getting bids over asking than to sell for $450,000 after several listing price cuts?

Full article at blog

WSJ: "It's impossible to time the market."

Also WSJ: "News Flash! Home sellers upset they failed to time the market."

Ho hum. Another day, another pontificator. I should know, as I too am a pontificator. *grins

Market values remain up where I live in Springfield. The only thing that's changed so far is houses that were selling in 3 days or fewer now take a couple of weeks. My SIL in Kansas City just went under contract 5 days after listing to sell her home for full asking price, no financing or repair contingencies, as long as the appraisal supports it.

The market is still strong in Missouri. In other markets, YMMV. I agree with Reed that not getting "what my house was valued at 1 month ago +10%" is hardly values falling. They just aren't going up as fast. Can't make a killing in 3 months like you could half a year ago. But anyone who bought in 2021 is still doing VERY well in my area. My house I purchased in June that year is up over $90K.... not bad for living in a spot and doing zero else!

The economy is very much determined by the collective minds oft the population. If the population believes that home prices are falling, then prices will fall because the buyers stop buying and wait until prices fall. If no one is buying, then prices do fall.

It's much more obvious when it happen in the stock market, but it happens with home prices, too.