LA: Home Asks/Bids Leapfrogging Downhill

LA Daily News headline: Buyers and sellers play leapfrog as housing market cools

Sub-headline: Past sales provide little guidance in a shifting market, forcing buyers and sellers to rely on their instincts.…

While it is normal and customary to look at the past few months of sales, and maybe even older comps if it is the same floor plan in the same neighborhood, those houses were put on the market at least 30 days before the close date. Market conditions were much different even a few months ago than they are today.

As the market turns, the attitude and price adjustments follow. Again, it just depends on individual buyers and sellers as to how quickly that will happen.

Rather than drop their asking price, sellers with no motivation other than getting a high price for their home may elect to pull their house off the market and sit out the changes. Some buyers use these unfavorable market conditions to embolden their low-ball offers.

And so, the game of leapfrog begins.