How the market has changed!

I wanted to share a few random thoughts about the housing market. I heard from a Realtor friend about a recent scenario. She had just listed a home for $775K. After just 1 day on the market, she had an offer for full price - $775K. About 1 week into the escrow process, the buyer decided to back out - I think it was due to funding issues (this was at the same time that the JUMBO interest rates went through the roof). An unfortunate situation for sure, but not hopeless given the fact that the home had an offer after 24 hours on the market with these market conditions.

Fast forward to 60 days later, the home was still on the market and the seller reduced the price of the home to $725K in the hopes of selling it. Finally, after 75 days on the market, a buyer submitted a purchase offer. Only this offer was for $625K, not the $725K asking price. Unbelievable. $100K less than asking and a full $150K less than the original asking price. Wow. I don't know what ultimately happened or if the seller countered, but this just goes to show you how the real estate market has changed.