find yourselves falling - faster & deeper - than you expected...
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This is very interesting, Jim.
As we have seen recently, especially here in AZ -- aka, Arid-zone-AH -- almost immediately after the end of the Buyers Tax Credit program, there began a large drop in "asking prices". Just prior TO the end we in AZ saw a smaller, but significant drop in "asking prices", or in deal making price reductions and/or concessions. When it became obvious that the Tax Credit was not going to be extended, or probably renewed again, seller - many of whom had enter the RE market to try to sell their underwater homes - began to cut their prices to TRY to get their homes sold!
Since then, many if not most of the "new" sellers have taken their homes back off the market. And, those that are left in it are cutting their prices, again, even lower, to make whatever sale they can find.
This raises an interesting question: IF sellers no longer can offer "concessions", keeping the sales prices level, will this and they now be forced to cut prices even more to make any sale at all?
That may drive the price of homes down even farther & faster than you are predicting.
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TUESDAY, JULY 06, 2010
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