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Some Questions and the Pace of New Home Sales

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Blog by Doug Ingersoll | September 12th, 2014

Two questions. How long should a listing be coming soon? If a listing has a typical yard sign and on the top has a 'coming soon' rider, at what time point do prospective buyers loose interest?

All Realtors - most anyway - gladly create searches for folks that want to follow the MLS changes in a neighborhood. And you can have these changes automatically emailed to them as they happen. At what point do people become turned off when list price is adjusted by a very small amount just to get some notice? Is there a risk to the listing of looking (insert your own synonym for desperate, goofy and or irrelevant) by doing this? If the buyer is not attracted by $151,000 is it reasonable to expect that a price drop to $150,999 will have the offers streaming in? What if that change is made 20 times? Lots of games in this business.

RL Brown watches the activity of new home builders in the Valley. In this past Mondays 'Monday Morning Report' he had this chart on the number of units moving. Keep in mind that back in 2004 there was a total of 63,333 new home permits issued (from the Federal Reserve Bank of St Louis economic research):

That is just plain slow.