Agents are making more concessions than ever to obtain listings during the inventory shortage, even if it means seriously overpricing them. While this may be an acceptable strategy when inventory is tightening, it often spells doom if the market has already crested or has begun to decline. According to Steve Cook, publisher of Real Estate Economy Watch, the inventory drought has continued to worsen, with an 11.4 percent decline in inventory during the last 12 months. Nevertheless, Trulia sounded a warning alarm because home prices could be peaking due to shifts in the rental market, which means you might be talking to your sellers about price reduction in the near future. Here are five ways to approach the situation: 1. Risky market? Play it safe After five years of steep rent increases nationally, listing prices in the rental market are edging lower, and landlords are cutting advertised rents more often than before. Meanwhile, for-sale price increases remain strong, but …
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