Experts Say A Housing Recession Has Begun

(KNSI) – St. Cloud Area Association of Realtors President Kelly Schepers joined KNSI’s Bob Hughes on Thursday to talk about the local housing market.

According to a Thursday report, existing home sales nationwide fell by six percent in July from the month before. They were down 20 percent from last year. Schepers says local trends are similar and that means homes are staying listed for longer.

Months of supply, a closely watched metric, is increasing back towards normal levels. Schepers says sellers need to work harder to convince buyers to close the deal.

“Now is the time to stand out from the competition. Not just put your home on the market and expect it’s going to be sold in two minutes without you having to lift a finger.”

Thursday’s figures prompted National Association of Realtors Chief Economist Lawrence Yun to declare that the country is in a housing recession.

Schepers advises sellers on how to navigate the changing dynamic.

“I would say the biggest thing for buyers is they cannot envision themselves in your home if you are still plastered all over it. You need to remember that when you put your home on the market — yes, it’s your home, it’s the thing that you’ve cared for and you have pride in and that you’ve lived in all these years, but you need to take yourself out of it and make it more of a marketing piece.”

Listings are down but not enough to offset the drop in traffic. The National Association of Homebuilders says its members are concerned about prospective sales in the coming months.

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