More homes on the market; why some sellers are repositioning

As the local housing market continues to evolve, sellers are facing increased competition. Inventory is up more than 20% compared to this time last year, prompting more conversations around pricing adjustments - or more appropriately referred to as “repositioning” - to align listings with current market conditions.

In simple terms, repositioning means taking a fresh look at your home’s price and how it compares to similar properties. It’s not about giving up value, it’s about ensuring your home stands out in a more crowded marketplace.

This rise in inventory isn’t consistent across all neighborhoods. Some areas are seeing homes sell quickly with multiple offers, while others are experiencing slower activity. Sellers in these more saturated markets are adjusting their strategy accordingly.

In one week in mid-March, the market saw 142 price adjustments on residential homes and 31 on villas - a clear sign that repositioning is becoming more commonplace. Nearly 35% of the homes that went under contract last week had undergone a price repositioning beforehand.

The key is understanding that repositioning is not about panicking and slashing prices. It’s about responding thoughtfully to market feedback. Sellers who treat their listings like dynamic products, ones that can be fine-tuned based on consumer interest, are the most likely to succeed.

And here’s something to keep in mind: repositioning done thoughtfully and at the right time can actually boost buyer interest and create new momentum. It’s not about making frequent, tiny drops that don’t move the needle - it’s about taking a clear, confident step that helps your home connect with more buyers.

For example, if your home has had plenty of showings but no offers, a repositioning of around 5% may be enough to push someone from “interested” to making an offer. If you’ve had little or no activity while similar homes are selling, a more significant repositioning, closer to 10%, may help put your home back on buyers’ radar.

In today’s balanced market - with just over four months of housing supply - the old mindset of waiting for the market to catch up is less effective. Sellers need to stay flexible and responsive to real-time feedback from buyers and agents.

And there’s encouraging news: even with repositioning, home values remain historically high. Since February 2024, the average sales price has risen 14%, and the median price is up 7%. So, while adjusting your price may feel like a compromise, you’re likely still in a strong equity position compared to just a few years ago.

Ultimately, the goal is to sell your home within a time frame that fits your plans - whether that’s moving on to your next home, tapping into built-up equity, or simply wrapping up one chapter to start another. Repositioning is a strategic tool that can help you get there faster and more efficiently.

If your listing isn’t generating the activity you expected, don’t be discouraged. It may just be time to reassess and realign with where the market is now.

As always, working with a knowledgeable real estate professional can make a big difference. The market may be finding its balance, but with the right guidance and a smart approach, sellers can still come out ahead.

Chip Collins is the Broker-Owner of Collins Group Realty founded in 2002. Find Chip at chip@collinsgrouprealty.com or collinsgrouprealty.com