It was quite a day today, but hey, they’re all great days! I think we are as busy as we’ve been all year, and for one reason.
Logic and common sense are returning to the market.
They are being fueled by Zillow and Trulia, because they are providing a baseline – some place to start the investigation. Every person I meet has already looked at Zillow first!
Zillow is pouring it on too - they are spending $75 million this year on advertising! I hear them every day on sports talk radio, and with all their headlines, they have become the household name for real estate.
What’s next for consumers?
I hope the combined effect of higher prices, thin inventory, and low rates causes more people – both buyers and sellers – to use the tools, and be more methodical about their decisions. Work with agents who bring extra value – especially those who employ effective sales strategies.
When the frenzy was cooking, buyers just wanted to grab a house, and they fired at will.
Many of the prices paid didn’t have much relation to the easily-found comparable sales. But the gamble paid off – they are in, and have probably gained some equity.
But now that prices are up 20%, people are being more cautious and deliberate – which is a great sign for the future of the local market.
The logic setting in can be seen in our actitve-to-pending ratio:
NSDCC Detached-Homes (Carlsbad-La Jolla)
Make no mistake – the lower end is still on fire. The higher-end folks tend to price their homes to sit. There are 323 houses for sale listed over $3,000,000, and the average market time is 153 days (eating up the entire selling season and still not sold).
But forget the statistics.
Today was monumental for many due to the first day of school – and we are no different. Kayla’s sister Natalie started her senior year of high school today, captain of the dance team and in charge of her destiny: