What Sellers Need:  Patience . . . and Price Cuts

Not every home on the 2700 block of Ewing Ave. South in Minneapolis is currently for sale.

for saleIt just seems that way.

In fact, on the west side of the street, there is now a stretch of eight homes where four are currently on the market (in fairness, one of the homes is now under contract).

What Gives?

If you didn’t know the neighborhood, you might be concerned that all those “For Sale” signs reflect some ominous slide in the block or adjacent area.

While the planned Southwest Light Rail corridor is a couple blocks east, I don’t think that’s the explanation:  once the line is in, I think it will actually increase nearby property values — provided, at least, that the homes aren’t too nearby (Ewing isn’t).

So, what gives?

I think there are two explanations:

One.  Generational turnover.  Several of the owners bought decades ago, and are now downsizing.  In other words . . . it’s just time.

Two.  Inventory backlog.  Two of the homes came on the market months ago, at aggressive asking prices, just as the market was decelerating.

Overpriced homes in shifting markets . . . sit (surprise, surprise).

Combined with the two newer listings, there’s now officially a backlog.

Buying Opportunity

What happens next?

Undoubtedly, some combination of price cuts and longer-than-average days on the market.

Meanwhile, other would-be Sellers — like the home around the corner on Ewing that just came on the market — are having to price lower to stand out.

Add it all up, and it spells a unique opportunity for Buyers who’ve been eying this (very) desirable neighborhood.

See also, “Sell in May and Go Away?  Not If You’re Also a Buyer.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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