Seller Optimism – Is it Well-Founded?

Even with more home sellers reducing their initial asking prices nationally, a recent survey found that they’re feeling quite optimistic these days. Over 75% of them aren’t expecting to lower their asking price. However, this outlook doesn’t match up to the reality of those who sold a home last year, as only 42% of respondents who sold a home received their original asking price.

For those wondering why sellers are optimistic, one reason may be their location. Homeowners in northern states and popular areas, like Columbus, have a much higher chance of getting their original sticker price, or even above it.

Locally, the west side of  Columbus, (school districts of Dublin, Hilliard and South-Western) homes are selling just above asking price as the weather has warmed. Since the end of the school year, homeowner’s have seen selling prices rise from just below asking (98.6%) in January to just above (101.1%) in June.

However, cities with less attractive prospects such as San Francisco aren’t expected to fare nearly as well, with almost 20% of homes at risk of selling at a loss.

Many homeowners who are planning to sell their homes during the next 18 months are planning to play it safe. Of the future sellers surveyed, nearly two-thirds (62%) said they have a backup plan in case their home doesn’t sell quickly.

Speed of sale is not an issue for single-family homes on Columbus’ west side.  Of those who sold their homes on the west side in May (340) and June (332), they were on the market for 5 days and 4 days respectively at a median price of $425,750.