From Tim Logan and Andrew Khouri at the LA Times: Housing price cuts point to a shift in Southland market
The latest sign that buyers are gaining leverage in Southern California’s housing market: Price cuts are back.
The number of homes with reduced asking prices has risen sharply in recent months … In Orange County, the region’s priciest market, about one-third of sellers have been forced to cut prices, according to data from real estate firm Redfin. …
These trends have been building all year. But home sellers — often the last to see market shifts — are finally getting the message, said Paul Reid, a Redfin agent in Temecula.
“A lot of what we’ve seen over the last six or eight weeks is people lowering their prices to get buyers in the door,” Reid said.
Inventory has increased significantly in a number of markets, after bottoming in 2013. And more inventory means slower price increases (maybe even price declines in some markets). Yet many sellers have listed their homes assuming the double digit price increases would continue. The result: no buyers and price cuts.