Market Priced Real Estate

Considering the softness of Mesquite, NV's real estate market, it is interesting to see that there exists a significant disparity between the average list price of existing homes and the average recent selling price of existing homes and new homes. Resale properties were recently priced an average of 25% higher than sales of existing homes or new construction.

Does this disparity between the list price and selling price mean that buyers are successfully negotiating lower prices? A review of the MLS data for the past year, shows that buyers paid an average of just 3.9% less than a property's list price. It is evident that most existing home sales were sold at an amount very near the list price (within 4%). If buyers were making low offers for properties, they have been unable to negotiate a successful purchase at the low price. If they had been successful, there would be a much greater spread between the list price and selling price.

Most likely, low-ball offers are being rejected outright by the seller, and it is very possible that buyers are not even looking at many of the over priced properties available. Today, buyers are quite knowledgeable about prices and market conditions; they know what homes have been selling for; they know the asking price for homes; and they know there is a substantial disparity between the two prices. Homes that are priced to today's market are selling. Many buyers appear to be waiting on the sidelines for further price reductions before they will commit.