Properties for sale above the most recent comparable sales price, simply are not selling. This is the case of sellers basing their sales prices on what they believe and not what they see. Hence they will be chasing the market as it corrects.
Since there are no crystal balls, the market analysis technique used by this investor/realtor has been reading two things: the average sales price/volume and patterns in price charts. So far so good.
The averages have been in a clear uptrend since the bottom of this market in early 2012. Some speak of this bull market as getting long for rising 40% within two years. Seems reasonable for me to believe that. Another case can also be made that this bull market is only two years out and less than half the time of a normal bull market and this correction might be a middle inning move, not a late inning move. Evidence can support this:
1. FED Reserve policy is accommodating
2. Real estate stocks have not diverged from their averages
3. There is still a large amount of buyers ready to make a purchase
4. No other options to invest money
Cut your losses short!
In 2007 I had one final property to sell after selling the rest of my properties at the top of the market. Initially I had it for sale at $1.4M. After 30 days lowered it to $1.3M. It then dawned on me that I was chasing the market. I dropped it within weeks to $1.1M and sold it. I lost $100K on that property and it could have been $400K if I held on to it. Overall I made out like Bandit on my portfolio of real estate.
This current correction is needed to reset the market and perhaps will set another base from which to make the next entrance or exit and give us signs of what to expect this coming year.
Keep your eyes on prices and activity after August as the years busiest vacation month draws to an end. If September is slow, so goes the the remainder of 2014