Overpriced homes not only don't sell, they make a mess of the real estate market statistics.

Many real estate buying and selling decisions in the Santa Clarita area are based on market statistics and comparable home values in an area.

What happens when these statistics are skewed by crazy sellers with overinflated prices? How do we adjust for this?

Case in point:

The home at the corner of Calle Primavera in the Sonora Ridge tract of Tesoro del Valle has been on and off the market a few times in the last two years (no, it never sold). Currently priced at $950,000, it has a small pool that has (finally!) been completed, a smallish lot and a busy corner location.

Comparable homes in the area range in price from $768,000 to $819,000, with the last sale at $773,500 for the same model sans pool but with a view and a better location. Since the home at $819,000 is a pie-in-the-sky price as well, the true upper end of the range is really $799,000.

This means that the Calle Primavera home is overpriced by at least $150,000! YIKES!!! That means that a 16% price reduction will likely be necessary in order for that home to sell.

Fortunately, most of the major price reductions that we’re seeing in the Santa Clarita area are homes that are in a similar situation. This is not the market where sellers should be pricing this aggressively. With plenty of homes to choose from and an average time on market in excess of 60 days, sellers need to be more reasonable in making their pricing decisions.

If you’re planning on selling your home, be sure to consult with a qualified Realtor who will take the time to go over the market activity with you so you’ll be able to make intelligent pricing decisions.

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