Happy Memorial Day – to those who have served, and those serving our country – THANK YOU!
We’ve been gone the last couple of days, but didn’t miss much. With sellers pushing higher and higher, the deals are in short supply – it would be a good time for vacation!
Here’s how Shadash described what he is seeing:
I think the crazy pricing is a combo of many things.
1. Sellers really are irrational
2. Sellers have either taken $$$ out of their house or have a bunch of debt they need to cover before selling not allowing them to sell at the market price.
3. Realtors are trying their best to price the market up.
4. Banks aren’t foreclosing allowing sellers to sit on wishing prices
5. Buyers have been waiting on the wings saving up $$$ allowing those that can’t wait any longer to take the plunge even if it doesn’t make sense.
6. When prices were crazy buyers were pushed to the outskirts. Now those same buyers are all starting to focus on the better parts of town creating more competition and pushing up prices.
I’ll add to his list:
7. The irrational sellers are prone to hire the most irrational agent, and together live in fantasyland.
8. Most agents are order-takers, and don’t have the skill or willingness to talk about proper pricing.
9. As a result, we’ll see more range-pricing, the lazy man’s way to real estate.
10. The real deals are going to get even more attention/offers, and prove to be elusive.
11. Mortgage rates under 5% are another boost for buyers, but they’ll be patient – they’ve come too far to overpay now.
12. If buyers are going to pay more money, it’ll only be because they were able to upgrade – usually on location (Shadash’s #6).
If sellers and listing agents would just be reasonable, we could get something done. But when they tack on an extra 5-10% onto the list price, and employ other antics/gimmicks, it is polarizing – and they reinforce the buyers’ patience.
Once they start lowering their price, we should see some real action – maybe July?