The real estate business has been too easy the last few years, and it appears a tougher market is coming, which will help weed out the agents. Unfortunately, downturns don’t discriminate – a slower market will cause the retirements of realtors young and old, of every age, and every color. Be happy it lasted as long as it did, and you made the best of it. I hope we all make it!
But let’s deal with the reality – we can handle the truth:
Apparently, this is a topic that draws interest. When first mentioned on Monday, we had the highest readership of the year:
P.S. The 60,949 is the # of comments over the years – thanks for being here!
Down here in sub-$1M Bay Ho, the market is still hot. We had one “open house” last weekend in our ‘hood. Traffic was heavy. The listing agent told me he had 3 firm offers on the table. The listing broker stopped by in a new BMW with flowers in hand.
Two weeks ago an $899k 1500 sq ft Home Depot-upgraded home flew off the shelf after one “open house” with a full cash offer. The current owner was even given a 60 day rent-back for $1.
I see nothing but ‘wine and roses’ on the horizon for Squaremont.
….the market is still hot.
The market is still hot everywhere, just not as hot as it was.
We’ve scaled back from full-blown frenzy in 2013, to frenzy-ish since. Buyers and agents are still on the housing crack, and will jump at all the good buys.
But not all listings are selling, even in Squaremont. This has been on the market for 76 days, and you can see what the problem is:
In any year, only about 2/3’s of the listings sell. We’ve seen the NSDCC sales drop 18% YoY in the first quarter, and if it continues, then in 2018 we might only see 55% or so of listings sell, instead of 66%.
If that happens, it won’t be because of lack of inventory (it’s running about the same YoY) or higher rates or tax reform. It might be because buyers are being more cautious about buying the perfect house for them, which is GREAT news and the easiest thing to fix with price.
If the real estate gods issued a warning to sellers to be sharp on price, it would be done. But instead, sellers and agents will keep pricing higher and higher and 20% more of them will be left holding the bag this year.
That’s all it is, and nothing more. No time to hit the panic button, or change selling decisions (sellers are notorious for blaming the market instead of their price and decide to pull their listing until next year).
It is the way the market works, and a very natural part of the process.
But it will drive more realtors out of the business. Fewer sales and more fraud and deceit by the desperate ones will be the final blow.
I spoke with the listing agent for 4514 Jutland Pl. It’s an OPT and he knows it. However, some owners “just don’t want to give them away.” Where have I heard that before?
Another popular line sellers love to use….”I don’t have to sell” hah it will happen again as it always does. Peaks and valleys. Jim is supremely confident that reverse mortgages will save the baby boomers but the baby boomers only have their home equity for the most part and they are not going to screw their kid’s inheritance for their own sake.