Real Estate Confidence & Seller Psychology

October 6, 2010

by Scott Sambucci


Was just reading Jonathan Miller’s post on Matrix about Point2’s Real Estate Confidence Index. Check out how psychology affects the active market in real time:

Price Reduction Measures: Jan 2010 - present (90-day rolling average)

Left axis, black line: Measures the percentage of active sellers that have taken at least one price reduction in the last 90 days.  A 10% rise since the Spring – that’s a huge movement in such a short period.

Right axis, orange line: Measures “by how much” these sellers are reducing their prices. Seems sellers are getting more desperate – taking larger price reductions in a post-tax credit market.

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