Realtors are feeling a shift.
“Everything shifted end of spring, beginning of summer,” said realtor John Moreno.
Moreno has been selling homes for more decades than he wants to admit, but for the first time in years, he is pricing things differently.
“Sometimes that is going to require maybe putting a list price lower than we would have six-weeks ago, two-weeks ago even,” continued Moreno.
A two-bedroom, one-and-a-half bath in Altadena, California was listed for $999,000, around $50,000 less, to bring buyers in the door.
“Had we priced it like we would have six-weeks ago, we probably wouldn’t have gotten as much activity of people seeing it,” said Moreno. “As we did so it worked out well for sellers.”
According to new data released by Zillow, the average price of a home in Southern California has dropped 6% since May.
It’s the first time home prices in the Golden State have decreased in 10 years.
Although home prices may be dropping, many believe it’s likely just a dip to adjust to the increase in interest rates versus an all-out downward trend.
“Obviously with the interest rates increasing, the amount of monthly payment you qualify for is going to change the amount of loan you can get to purchase the home,” said Moreno.