Luxury vs. non-luxury Market and the price of overpricing
We’ve always known that seasonality plays a big role in real estate, but this MSI chart shows 1) that the lower-priced (under $2m) market has the most competitive supply and demand dynamic, and 2) how much more seasonality affects the luxury home end of the market. Homes under $2m ebb and flow by season, but the fluctuations are much more dramatic in the luxury home segment.
These 2 charts below illustrate how overpricing can dramatically affect the sales price to original list price percentage and the average days on market, and overpricing tends to negatively impact the sales price:
In case you missed the very important quote from House Selling for Dummies, here it is again, “Ironically, instead of getting more money…over pricing usually stigmatizes a property and reduces the eventual sales price to less than it would have been with more realistic pricing.” Just because the market is hot, don’t get greedy. Your home is beautiful and all, but you gotta play the game to get maximum price.