What's Trending: Realistic Pricing

By now, you’ve probably heard this trend: affluent home sellers are hesitant to reduce their asking prices while buyers are waiting for price reductions. Could the days of buyer-seller stalemates be numbered? 

Coldwell Banker Global Luxury Property Specialists foresee a market shift that could bring buyers and sellers closer together by the end of the year, according to the latest Mid-Year Report published by the Coldwell Banker Global Luxury® program.

In the report, about 34% of Luxury Property Specialists said they expected affluent sellers to get more realistic in 2024 and finally leave the aspirational pricing of the pandemic buying boom years in the rearview mirror. 

Luxury Property Specialists name several factors that have kept the stalemate going: elevated interest rates, high home prices, and growing selectivity among buyers. But as inventory levels rise, so too will competition between sellers, which is expected to lead to more price adjustments in some locations. 

For more on this evolving trend, we turned to Luxury Property Specialists from Dubai to Beverly Hills and several sought-after markets in between to hear what they had to say. 

"As homes that are not priced competitively sit on the market, and buyers wait on the sidelines for interest rates to come down, sellers who want to sell now will need to adjust their expectations to the current market reality.  Affordability with the higher interest rates have left many buyers and sellers in limbo and those that are motivated to move will be willing to negotiate a deal that works for both sides.  Working with knowledgeable, skilled and trusted real estate agents is more important than ever to help buyers and sellers navigate the ever-changing and complex real estate market conditions to gain a competitive edge." - Dahlia Fox, Coldwell Banker Realty, Beverly Hills

“Pricing homes slightly below market is the new high!  Even Luxury buyers want to feel like they are getting a deal in this market." - Jason Brewer, Coldwell Banker Realty, Gahanna/New Albany

 “Over the past few years, Dubai has seen a significant influx of millionaires, driving prices in some luxury areas to more than double. While the demand for luxury properties remains strong, buyers are becoming more selective, leading to more moderate growth and sellers adopting more realistic pricing expectations.” - Ayman Youssef, Coldwell Banker UAE

“Sellers are looking at numbers from the spring and hoping to reach the same heights but inventory is not moving with the same demand as in the spring. Seller expectations will need to adjust accordingly.” - Vanessa Foster, Coldwell Banker Realty in Milton, MA. 

“As properties sit longer, sellers will become more realistic in pricing." - Kymm Soden-Thornton, Coldwell Banker Realty, Westlake Village, CA. 

“Because of the ‘two markets’ reality [in Turks and Caicos], sellers of properties not in the ‘sweet spot’ need to get realistic with their asking price and not try to chase the numbers they're seeing in other neighborhoods.” - Graham Canham, Coldwell Banker Turks & Caicos

This is just one of several trends highlighted in the Mid-Year 2024 Report. Read the full report here and stay tuned to discover them all.