Prices of For Sale by Owner Home and Other Residences Take a Slide

by Donald Hanz on Foreclosures

The prices of residential properties all around the U.S. dropped during the July-September 2010 quarter. For home sellers, including sellers of for sale by owner home, this means having to adjust their asking price and probably getting less than what they anticipate since they need to compete with other homes available for sale in the market.

Prices of Portland foreclosures and other existing houses, as well as newly built dwellings, declined by 3.6% when compared with the 2009 third quarter. Compared with the 2010 second quarter, the price decline is less than 1%. The decline mirrors price trends in almost all major cities of the U.S. as values of residences continue to tumble all around the country.

The presence of Oregon foreclosed homes and other distressed dwellings have been largely blamed for the continued decline in houses' selling prices. All around the U.S., home prices fell by 1.6% compared with last year and remained almost flat when compared against the 2010 second quarter.

Sellers of residential properties have found it hard to earn profits since the end of the federal government's tax credit initiative. The slide in prices is particularly worrisome for sellers of for sale by owner home properties since they do not have the expert aid of agents and they need to compete with far cheaper houses, such as foreclosed dwellings and those properties sold through short sales.

According to real estate agents, foreclosed homes for sale are being sold cheaply in most markets, bringing more pressure to FSBO and newly built home sellers to lower their asking prices which often results in profit loss or mere break-even deals. To make it even more difficult, the decline in prices has not encouraged more buyers to purchase houses which means that a big number of residential properties are in the market competing for a handful of investors and home buyers.

Although Portland home prices experienced a yearly and quarterly decline, a few local markets did experience year-by-year increases in prices during the 2010 third quarter. These areas include Washington D.C., San Francisco, Los Angeles, Boston and San Diego. Prices of regular dwellings, foreclosed properties and for sale by owner home residences fared a bit better in these cities compared with the rest of the country.

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