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Saturday, September 04, 2010

Another potential home seller chases the market down

by Calculated Risk on 9/04/2010 11:26:00 PM

From Dina ElBoghdady at the WaPo: In struggling housing market, buyers and sellers are out of sync

ElBoghdady tells the story of an accidental landlord in the D.C. area - someone who wanted to sell, but wouldn't cut his price. So he rented his home instead, while he waited a few years for a better market. Earlier this year he tried to sell again at a lower price, but he still had no luck. Now he is dropping the price again, and there are still no buyers.

Now it sounds like he plans on renting the property, and he will once again wait for a better market to sell.

In a real estate bust, this strategy is called "chasing the market down" (or "chasing the price down").

Also, ElBoghdady writes that existing home sales "were far worse than some of the most pessimistic economists had expected". She must have missed this: Lawler: Existing Home Sales: “Consensus” vs. Likely