Asking Price Adjustments
As interest rate increases continue, ERA member agents report that vendors have begun to react to the slowing property market with more realistic asking prices for their properties. It will be some time before we can judge the full extent of this adjustment.
Vendors are prepared to entertain a price adjustment on the asking price where they have built up significant equity on the property. In these cases, there is no question of negative equity.
Also there is evidence of vendors lowering their asking price when trying to trade up in the market. This is in anticipation of them negotiating a comparable reduction in the price of the property they are chasing. This effect has begun to loosen the stalled transactions that have been experienced in the market for some months.
Vendors are prepared to entertain a price adjustment on the asking price where they have built up significant equity on the property. In these cases, there is no question of negative equity.
Also there is evidence of vendors lowering their asking price when trying to trade up in the market. This is in anticipation of them negotiating a comparable reduction in the price of the property they are chasing. This effect has begun to loosen the stalled transactions that have been experienced in the market for some months.
