Why a price increase for this home?

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brucemx5_IHB

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I have Redfin set up to notify me of home listings around my area in Northwood, and this morning I received an email notifiaction that noted an *increase* in listing price of a $1,075,000 -> $1,129,000). In the past 3 months I've been getting these updates, i've never seen a price increase - always decreases. What's going on here?


The home:


<a href="http://www.redfin.com/stingray/do/printable-listing?listing-id=483162">http://www.redfin.com/stingray/do/printable-listing?listing-id=483162</a><a href="http://www.redfin.com/stingray/do/printable-listing?listing-id=483162"></a>
 
The seller is either an idiot, or they are prepping for a fraudulent straw buyer to cash them out. When a house is unsold on the market for 120 days, raising the price 10% certainly does not help.





I would note this house is now near it's Zillow Zestimate. Perhaps, this buyer thinks Zillow is accurate and the market is not.
 
<p>It can also be a "trick". That is, the seller is desperate to sell & cannot lower the price (because if he does, he'll be "underwater"). So, the seller resorts to increasing the price hoping that some foolish fence sitter might be tricked into thinking that prices are going up & jump in. Many realtors advise their clients to use this trick.</p>

<p>Keep in mind that, currently, a good portion of the general public still think that prices are still going up. And that's because: I've seen newspaper articles with the titles like "Sales are down but prices are up". The "prices" refer the the "median price". The median price does not accurately reflect the "real price". Of course, most of the general public does not understand this. Hence, the perception that prices are still going up.</p>

<p>Here is another example in San Diego:</p>

<p>http://www.ziprealty.com/buy_a_home/logged_in/search/home_detail.jsp?listing_num=076010173&page=1&property_type=SFR&mls=mls_sandiego&cKey=g6l2gxvk&source=SANDICOR</p>
 
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