No showings in red hot Utah market

[Aubrey Porter]

I listed a property in an area that has been red hot the past few years. The comp report has 5 homes (1 closed escrow and 4 pending) very similar if not the same square footage, condition, and upgrades that sold for $800k. Listed for $789 and have heard nothing and only 4 groups at open house (none came with agents.) My Agent and brokerage are very confused and not sure why.  Should I price reduce? Does price reduction create a buzz? Do I need to go $749 for buzz? 

[Kim Gibson]

I think it might be due to the interest rate hike.  Looking at the numbers on bankrate.com shows the rate hike from January to April is 2 points.  At your asking price that is around  a $1000 difference in the monthly mortgage payment.  I know comps just show list price, not final sale price.  But I think the mortgage payment is a big factor, especially as that is what most buyers are looking at.  No one really looks at that big listing price when determining what they can afford.  They look at the monthly payment.  This is a different buying market from last summer as the Fed has changed the rates.  

Also look at your listing and decide if the photos and description are really matching the price.  I have seen some poor listing photos.  did you hire a photographer, did you stage the home?  Or are we in still in that early spring buying season and you should wait till summer to get the most buyers?