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‘Anything Goes’ Pricing Strategy ‘No Longer Working’ | Realtor Magazine

While pending home sales were on the rise in June, closed sales of existing and newly built properties dropped. Home prices, too, showed signs of slowing growth, though they are still increasing. Some housing experts say the fall in sales may be tied to the rapid run-up in home prices.

In Southern California, for example, new- and existing-home sales dropped sharply in June compared to a year ago, and more listings there are undergoing price reductions. “The market is strong, but I’m seeing a noticeable difference in the number of buyers that are looking at my listings each month,” David Fogg, a sales associate with Keller Williams Realty World Media Center in Burbank, Calif., told CNBC. “We’re still selling most every home, but now it is usually with just one or two offers [as opposed to] the 10 to 15 offers we were seeing earlier in the year.”

Fogg says sellers may need to be more realistic about pricing their homes. “The ‘anything goes’ list price strategy is no longer working,” Fogg says. “Buyers want to buy, but we’re seeing fewer of them, and they are much more careful. Many properties are now selling and/or coming down in price.”

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‘Anything Goes’ Pricing Strategy ‘No Longer Working’ | Realtor Magazine.