The Buyer's Market: It's Over-Rated

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The Buyer's Market: It's Over-Rated

Are you calling it a buyer's market? The media has been telling us it's a buyer market for some time. The real estate community talks about it too. Everyone seems to believe it.

I think the Buyer's Market is over-rated.

Before you get your britches in a bunch, hear me out.

Saying it's a buyer's market, as a general rule, overlooks those markets, and niches, where this is clearly not the case.

Calling it a buyer's market gives buyers a false sense of security. They think they are always in the driver's seat, calling all the shots, and can get homes for 10%, 20% or more off the market value. Not always so.

It suggests that homes are sitting around waiting for buyers (yep there are plenty out there) to make any offer, and that sellers are desperate and will relinquish their homes for whatever the buyers are willing to pay. Buyers won't have to compete, and they can afford to take their time making a decision since inventory isn't moving until the buyers make it move. Again, not always so.

For Sale Signs Granted, there are plenty of markets where the inventory is high and the demand low, where buyers can be pretty choosy, and prices are still falling. Some markets are pretty crappy right now. I remember being told that less than 6 months inventory was a seller's market, 6 months or so was a balanced market, and 8 or more months indicated a buyer's market - it was in a CRS class, and I think NAR also cites these numbers. Perhaps. But it ain't that simple. Not anymore.

It seems that "Buyer's Market" just doesn't work all that well to classify our current market, perhaps the most difficult in decades, except in the most general sort of way. And it deludes buyers in some market areas and niches (e.g., the least expensive homes or REOs) into thinking they will get a great deal...easily, with little effort and on their terms.

Consider the REOs - we now see many offers (sometimes 15-20) on these, often within a day of the home coming on the market, and commonly many are over asking price (maybe not true in your area but becoming far more common here in SoCal). As someone with multiple buyers who have been through this drill several times and who are frustrated, and disappointed...is this niche a buyer's market? Nope, at least not in their minds.

And how about non-distress homes we are seeing with multiple offers. I had one just a few weeks ago (within 24 hours there were well more than 10 offers, many over asking - fortunately my buyers lucked out, but the sellers had the luxury of picking which offer they wanted to pursue). And it's happening elsewhere...an article in the Los Angeles Times makes this point very clear.

We need to truly understand our particularly markets and individual niches so we do not mislead buyers into a false sense of security or have them make decisions based on misinformation. If we can't communicate what is going on we lose credibility, and aren't providing any greater value to buyers than when they simply make decisions based on what they read in the papers.

Calling it a buyer's market is the easy way out. Everyone "knows" what you mean, and you don't have to understand the realities of the market nor explain it when folks ask.

I still say the buyer's market is over-rated! I suspect some folks may agree.

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Posted by Jeff Dowler ~ Carlsbad Homes for Sale ~ 760-840-1360 on 05/05/2009 11:15 AM

Comments (99)

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Originally posted at: Carlsbad Real Estate News and Views: The Buyer's Market: It's Over-Rated

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99 Comments on The Buyer's Market: It's Over-Rated

MAY

2009

I agree. More than ever, regional issues come to the fore and it is not some "overall" picture of a market cycle. In many areas, listing inventory remains "thin", as soon as one categorizes by price and by property type. Important to reflect such niche areas, too, when labelling. Thanks for your timely post.

Jeff - I especially like/agree with your second bullet point here. While there are some wonderful products, inventory, tax credits, and such for buyers right now... the "Driver's Seat" mentality can be a dangerous way of thinking and going about buying a home. I especially see this in folks wanting to "take advantage" of the great deals on foreclosures, but not really knowing what they are doing. A "good deal" can fast turn into a nightmare.

I agree with you. Some agents don't even like to call or market as buyer's market. It truly points that houses are sitting around and buyers act as if they can get it for what everthe price they want, irrespective of the market value for the home. Great post

I tend to agree overall. buyers do feel they can low ball offers and that's what they "should do" It doesn't work most of the time. The interest rates are very good .....if you qualify.

Thanks for the post and the reminder today.

Patricia Aulson/Portsmouth NH Real Estate

One thing people always seem to forget is real estate is LOCAL.

Very true. Buyers are just all over the place these days. We as realtors have to always try our best to educate our clients. Thanks for a great blog.

As always...you give straighforward information for the consumer....and as always...it's local...down to neighborhoods.

I saw a post in someone's blog the other day that actually had four median prices. I was confused after my first read through the post, but a second reading clarified that the median prices were for four separate markets. So rather than a simple "buyer's market" or a "seller's market" it had homes categorized by either price or location. Certainly made a lot of sense.

I saw the other day in our newspaper that the wealth areas here in San Diego County are still declining, but the lowo to middle-income areas are having bidding wars with properties selling for more than the listing price.

If feels like a sellers market when it comes to Reo's, short sales and forecloses

Sea to Sky - thanks. And the discrepancies are becoming more apparent, at least in my area.

Jason - thank you for your thoughts on this. I think it is a real problem as many buyers seem to think it is an easy process these day. They need to understand that is not always the case, especially when it comes to getting a loan.

Jeff

Jeff - excellent post here, and I am seeing the same things here. Multiple offers and over asking price, it really isn't that easy.

I tend to agree with you. The buyers often think they can get an unrealistic percent off.. wrong! Not in ever case does the vendor "need" to sell. I do prefer working with buyers now than I have in the past several yrs though as it is more even keeled for us. Good article in LA times too.

I agree. In our area, there is a lot of demand for lower-priced homes, but not much for luxury homes. Hence, it's a buyer's market if and only if you're looking to buy a luxury home.

Good post Jeff. We are seeing the same phenomenon over here in Phoenix. I have been prediciting for the past 6 or 8 months that when the market turned the buyer's would be behind the news. As always seems to be the case in any market. Everyday I get an e-mail/phone call from a buyer who says they read an article in Forbes, Wall St. Journal, etc. that says the Phoenix market is due for another 20-25% price decrease in the value of homes. Not taking into account that we are already 50-70% off the highs from a few years ago. Hell, I don't want a seller's market, I just want a sane market. Best of luck to you.

There's a lot of buyers competing for the well priced homes. Usually it takes missing a few for a buyer to understand that it's competitive out there.

Thanks for the post-you are right we need to educate our buyers as to what is really going on especially with REO properties.

Historically a sellers market was when there was a short supply of housing and lots of buyers out because interest rates are low. Historically a buyers market meant a large inventory to choose from and typically the interest rate was higher, limiting the number of buyers that were competing... buyers have low interest rates and in some places a considerable amount of inventory... but it is a just plain wEirD market because of the REOS and short sales and homes just this side of a short sale where the seller can't pay for repairs in addition to the new low affordable pricing and paying the buyers closing costs. Sellers couldn't accept the low ball offers if they wanted to in some cases.

It is what it is.

overrated is an understatement.. I just had 20, yes I said it 20 contracts on this REO... I listed only 4 days ago.

Suma - that IS the danger, and the disservice to buyers.

Patricia - well it is great for buyers in many ways, but there are exceptions.

Jeff

Jeff, good post. Don't you just love the new NCAR TV commercial that says, "Every market is different. Call a REALTOR." Oh, if they will all just do that.

Jeff, right on!!! What else could I add? We are experiencing the same multiple bid phenomena here in the Phoenix market; however, there ARE homes that are priced well and not a foreclosure. Just have to make sure it appraises since many lenders these days are tight fisted with their money. ;-) Good post!

It's a buyer's market in my area IF you are looking for a home where the seller needs to sell quickly, has sufficient equity to take a loss.

If you are looking for a foreclosure, low to mod priced single or town, get ready to bid or lose to an investment buyer.

Yes there are exceptions to the rule but how else are we to describe the current market environment? When it was a "seller's market" we weren't shy about touting it. Neither should we be about the current advantages buyers have.

Our job is to understand the ebb and flow of our local regions and where the opportunities are for both sides of the transaction.

But calling a spade a spade is not wrong and right now we're in a buyer's market.

Russel's comment about San Diego pretty much sums up how is in my area. Lower end things are getting multiple offers, sometimes quickly and higher end houses are just sitting on the market and declining in value. Real estate markets are all different and you can't just put a blanket statement out there and expect it to hold true nationwide.

Just like the maxium "all politics is local" so is real estate. And whether folks are calling it a buyers market or a sellers market, what really matters it what's happening in the area I sell and no where else.

Good points and good comments all the way round,

Michael

Roland - that is so true, and in this market and with the media reports, it is even more important to look locally.

Josh - agreed. And since the markets seem to be shifting it is even more importna to study what is going on.

Thank, Sally. Consumers deserve to know, and we should endeavor to understand as much as possible. But it takes time.

Jeff

THANK YOU for this post! I am seeing more and more buyers that think they can offer 30% off the list price and move right in. The lower-priced quality homes in my market often get multiple offers --I've had three listings this Spring that received multiple bids!

I've been calling it a "banks' market" because with all the short sales and foreclosures here in San Diego, it's the banks calling the shots and controlling our market. I spend a lot of time educating my buyers and they understand that there's no "low balling" in this market. Good article.

I think alot more people agree with you then you thought!

if the buyer buys in an area for 50% less than the 2005 prices, but that niche still needs to go down or will go down another 20% would you call that a buyers market? I give that one to the seller. It is like looking at a gestalt picture. If you focus long enough, you see the young woman in the picture instead of the old crone.

we are seeing the same up here in Ventura County. I have many investor clients who think because they have cash, they can come in 10% below asking, whether or not recent sales data support that or not. The majortiy of offers I have submitted in the past 12 months have been in multiple offers. One property I inquired about had 24 offers, most over asking. Once again, it comes to knowing the local market.

Amen, amen, and AMEN!! We can do our Buyers a disservice by using a blanket statement that it's a Buyer's market. While some great opportunities do exist, not every Seller is desperate to bend over and drop their pricing shorts. Many homes are already priced very aggressively to compete effectively.

You are so right! I am telling my buyers that there are good deals out there - and if they are so busy trying to get a great deal they will miss the good deals that are there for them - in other words, don't be a fool!

I wouldn't label the market as Buyer's or Seller's. It's definitely disbalanced. You can see in the same city the buyer's segment and strictly the seller's segment, at least here in Cleveland.

I totally agree! All real estate is local and even within a town, whether it's a buyer's market or not depends on the price range. The media is very misleading. There are some things that make the market a favorable one for buyers - prices have come down, but prices Sudbury MA and towns west of Boston are still high compared with other areas. Interest rates are low, and yes some sellers will negotiate more than they used to, but my buyers find out very quickly that their choices are limited and chances are if they like a property, someone else will too! First-time buyers, under 300K in Maynard, are especially surprised that houses are accepting offers in just days. Even so, some still have the attitude that are in the cat-bird's seat and if they wait they'll find a bargain -too bad, they are going to miss the boat! Keep posting - thanks!

Jeff, great points. It may be a buyers market, but I have been seeing several multiple bid offers lately.

It is a market with many nuances. My buyer's offer was one of 25 for an REO property. Some homes remain on the market for months without an offer, and others sell in days with multiple offers. Some locations are hot, other areas have a glut of homes for sale--and I'm referring to my relatively small area of the Palos Verdes Peninsula.

Market knowledge is key when working the micro markets within a local area. A buyer's market is not a blanket condition.

Russel - I think discussing the stats for different price ranges or specifi market niches makes sense. I do when working with folks dirctly but I don't usually report all those details in my market reports. Good idea. And I have heard, and seen the same information about the high and and low end markets.

Jeff

Francisco - my feelings exactly...and buyers are feeling it too.

Sharon - I see a trend here. Thanks for weighing in from Orange County/Newport Beach

Jeff

Its starting to be an even market. Its hard to beat the sellers up on price now for sure.

I just received this interesting graph for San Diego. Will have to take a look at individual communities too.

Altos Research data for median prices in San Diego, CA

Jeff (Altos Research charts and graphs are a terrific tool - some free stuff you can use too)

I agree. I went to a homeowners ass. the other day and explained that our market is not definitely a buyers market. I have buyers looking for a deal but cannot find what they want at the price they want to pay. And our inventory is going down because sellers are taking their homes off the market because they don't want low offers or no offers. Thanks good view.

Thanks, Karen. I thought it was a useful article that speaks loudly about what is going on in some markets. Once again it shows how localilzed RE can be.

Jeff

So true Jeff......and lots of other folks as well. We clearly have a 'sellers' market with the lower end foreclosure properties in Phoenix area. Every single file I have on my desk has had mulitple offers....every one. And all my agents have the same thing happening.

Media folks! Real Estate is LOCAL!

Jeff-Most of my buyers have instructed me to write offers much below asking price and we're now experiencing some multiple offers in some cases. I have the feeling we're going to see more!

Casey - the same seems to be true here.

Jerry - a sane market sounds like a great thing.

Tim - they do seem to wise up quickly when that happens a time or two. Having been through it myself I know it can be frustrating, and a surprise.

Pat - worth doing no matter where you are or what your market is doing.

Jeff

It isn't a buyers market here in Detroit any longer. Lots of multiple offers on homes priced right.

I agee this doesn't seem like a Buyer's market when it comes to REOs. I have Buyers now looking at these properties and insisting we write the offer as soon as we leave the home because they've lost several purchasing opportunities. It may not be a Buyer's market in the traditional sense, but it sure serves as a motivator to get Buyers moving again.

westfieldcarmelhomes.com

Interesting points but over 80% of houses being sold are short sales,foreclosures, and new construction, houses are being sold for and appraised at lower than they can be built, and we have 12 to 13 months of inventory, i still say its a buyers market.

It absolutely depends on the area you are selling in. There is still a large inventory of homes on the market in my area;however, well-priced homes are going under agreement rather quickly. In the luxury market in areas like Brookline and Cambridge many of these homes are on the market for quite awhile but it is due to the fact that they are holding out for too much. Homes that are priced correctly in the luxury market are selling.

Jeff,

The term is definitely overrated.Good post. Even locally different communities are more sought after than others and the good deals will not be had!

Just had a buyer (who really wants to buy) raise price limit from 80k to 120k. Buyer has come to realize that in order to really get a house worth living in, purse strings must be loosened.

YES to all of the above :)

I saw another post about overused buzzwords. "Buyer's Market" is one and "Tenant's Market" is another . . . some of the claims I've heard lately as a commercial tenant rep regarding "the deal they could get down the street" are pretty funny actually.

Our L/S ratios are in the upper 90s in attractive, popular, waterfront and river access communities.

Candice

Buyer's market? Really? I have one move management client who sold their home at the desired price before it was even listed. I have two more move management clients who sold their home in a week. I have a fourth client who sold her home in two weeks. I have two friends (who live next door to each other) who both sold their home in a day. And, drum roll please, I just staged a home for a client (future move management client maybe?) who just sold his home in a day with multiple offers. I also just heard an unconfirmed rumor that property values in my town, Jamaica Plain, have actually gone up 10%. (Although they probably meant "sales" not "values" and that still sounds a bit high to me.)

Buyer's Market, shmuyer's market. Feh, I say!

Maybe you should all move to the Boston area? (I'll help you move!)

Jeff, I call our market a very Volatile Market - multiple offers on well-priced properties and others sitting for months and the selection isn't as great as one would think looking at the number of inventory.

Sharon

Amen! Thanks for posting this... We are seeing multiple offers here in Indianapolis in certain segments of the market. Mostly REO's and low to mid-level priced areas. Buyer education is key right now as all the rules in a traditional sense are out the window. The media using the term "buyer's market" as a blanket statement is misleading for sure. It's all local....

Hi Jeff, Good post. I was talking with my broker and she told me of a listing in San Diego that had over 100 offers before they cut them off. To me it was totally absurd because the lender priced a property at less than half the comparable value to create the frenzy that ultimately happened.

I couldn't agree more. One of our 'micro-markets' - Dayton, Nevada - has gone from a 20.42 absorption rate in January, to a an 6.6 in April.

It is the first market in Northern Nevada to normalize according to absorption rate and buyers need to be informed of the rapidly changing dynamics of our markets so that they can write offers that are accepted...

I feel like buyers have a false sense of power the same way sellers had a false sense of values 3 years ago...

Good Post Jeff. The market is the market - up, down, buyer's, seller's, balanced. There's always good deals out there and there's always times when it's better to buy or sell than other times. I do think it's key that we as agents provide accurate info to our clients for whatever type of market that pertains both to the general area market and the neighborhood specific market. The media and other communication vias always create enough hype about almost any topic to create unrealistic expectations. However, at least in our market it's definitely "easier" to be a buyer now than it was in '03, '04, '05 and most of '06. We still have multiple offers on homes that are priced just under market in good areas but in general a buyer can actually "sleep on it" if they wish and have a good chance of getting their offer in the next day without necessarily having to compete with one or more other buyers. Which was not the case in the years mentioned above. One can get more home for the money now, than one could in '05 or '06. Real Estate is a great game full of randomity and ever changing challenges. Buyer's market Over-Rated --- could be -- but it's all part of the game. Keeps us on our toes

Hi Jeff -- You are so right, I actually wrote an offer two days go in a market where over 50% of the homes are under contract and flying off the market -- all real estate is hyper-local.

I could not agree with you more on this topic and it gives credence to the fact that real estate is local!

Here in Burbank, as long as buyers understand that today's "buyer's market" means that prices are down substantially from where they were a few years ago, they will be fine (assuming they qualify).

Jeff- Great minds must think alike... I wrote a similar article a few hours ago...

In my market, it is the REO and short sale market, buyers don't rule, the buyers and buyers' agent are both frustrated! Great post!

I believe much of the "misguided" Buyer perception is media driven. Most Buyers today take some time to realign their thinking when the "rubber meets the road" of actually viewing property. Once they "miss out" with a lowball offer on a house they really like, reality starts to set in quicker.

It's the same here in the OC. Well priced homes in the more affordable price ranges are often selling with multiple offers over listing price.

MAY

2009

Maureen - weird market indeed. Not an easy way to describe it.

Konnie - wow. But I suspect that is becoming more the norm

Marian - yep. Wisht ehy went into more detail about what thay really means to consumers

Jeff

Hi Jeff, great article. I believe that the best we can do is to provide to our buyer clients with as much information as possible. I also try to beat the multiple offer issue with good counseling and advice.

I try not to make it a practice to quote or feed into popular media, but "field facts" of what I'm seeing in the marketplace. FACT: Every contract I've written since November 2008 has been subject to a multiple-offer situation. I also try to reset my Chicken Little buyer expectations, those trying to buy "in tomorrow's market" and are not bidding high enough to win. Everyone gets one of those to learn a lesson, after that - NEXT! With 19 buyer cycles I'm managing as of this writing - I don't have time to live the definition of insanity.

very well put and I agree. Real estate is local, what happens in one town might not be the same the next town over.

Bettina

I broker in 3 states and 5 cities. I can tell you they have nothing in common. Yes, you sold your home for 75 cents on the dollar, but, in this area it is 90 cents on the dollar or more (appropriately priced and motivated). This is an education for some relocating clients. Some folks just do not get it, even after you provide data that reinforces...

Saying its a buyer's market creates some histeria (sp) that shouldn't be happening. Right now, it's good for buyers, but that doesn't mean they can get what they want for nothing. Its pretty competeiitve in my region.

you are very right. It is absolutely overrated. In our market place, Manhattan New York, we starting to see the old multiple bidding wars on some specific properties. Buyers are stunned when they don't get the property, they are suprised to know that there are OTHER buyers out there beside themselves!

Real estate is not only local it is hyper local...one neighborhood in your community may be doing very well...while another just blocks or miles away may have huge amounts of distressed sales. It is in my opinion that it is very important to break this information out when you are doing market reports and taking about how differrent individual markets are.

There is another element to factor into this equation that will effect your local market due to a different local market... I believe many that live in areas that have been pretty stable through this have not yet experienced...but that is for another blog post.

Agree completely, very local and you must do market analysis along with knowledge of the neighborhood and specfic sections of the same area to slice and dice this information for clients to understand. I also have found that REO's are getting multiple offers and going to the best offer with cash!!

I am in total agreement with you. I really dislike the "buyers market" menatality! It is frustrating for buyers and sellers. Reasonable offers are one thing, but some buyers really go to the extreme and you have to wonder where that mentality comes from... hmmm...the media? What is it worth to the customer, that is really the question they need to ask themselves. Everyone wants the best "deal" they can get, but some are just plain ridiculous. Thanks for the message, nice to know I'm not alone in the feelings about the words "buyers market".

In my local Whittier market, there are only 4 months of inventory, which technically makes it a Sellers' Market. I have written 15 offers since January, and every single one of them has been a multiple offer situation. If a property is in fairly decent shape, and if it will qualify for an FHA loan (not all cash), then it will receive many offers. It may have been a Buyers' Market 6 months ago, but not today.

In some locales, the "buyer's market" tag is not just over-rated, but incorrect! We've somehow got to educate the public on this... anybody have contacts with national media? THAT story is NOT being told.

I agree with many of your points. Buyers seem to think that the phrase 'buyers market' actually means - Sellers have lost their minds and will take anything you offer market. It's just not true. Sellers are not ready to sell their homes for 50cents on the dollar as far as my area is concerned. Negotiable - yes. Insane - no. I guess as with any other moniker - that market phrase means different things to different people. Slash - going out of business sale comes to mind too.

I just worked with a buyer who said the listing price on an REO was a 'teaser price'. I said I had no idea what that was - she really doesn't understand that she is not the only buyer looking at property right not that wants a deal. Let's just call her the buyer with the 'lone mentality'. I'm the only one out here shopping with a pre-approved mortgage and I want 30% below market values. DUHHHH.

Teri - we are seeing the same thing with sell priced homes, but the issue of appraisals coming in lower is very real.

Lenn - similar trend in your area, and many others it appears.

Hugo - I am not totally opposed to calling it, in general, a buyer's market. It's just that that term oversimplifies the reality in many area, at least where I am, and misleads buyers. But in terms of interest rates, inventory and other issues the market certainly presents good opportunities for buyers.

Jeff

Yep, good article and many good points here, Jeff.

I started in real estate in 1987 fresh out of the air force. There was nothing electronic about the business back then. No computers. No Internet. No HomeGain. No Lending Tree. No Lead Sharks calling me asking for 25% of my commission. Gas was cheap and we were all part time taxi drivers, part time sales people.

Buyers Markets. Sellers Markets. There are ups and downs in any cycle. I think that most REALTORS would agree with me that this Buyers Market has been one of the most painful on record because it has made us change the way we HAD to work, as opposed to WANT to.

The market of homes with the prices we witnessed was simply over inflated. It was bound to pop sooner or later.

How can anyone seriously think that any home as an investment could sustain double digit growth for any long period of time? It's stupid and wishful thinking at best. In August 2007, the bubble popped. We all wake up one day and we find that HALF of our mortgage/lending sources dried up.

Who's to blame (if you want to play the BLAME game here)? It's the predatory lenders who inflated people's earnings. Firms like Novelty Pay Stub firms allowed people to show stated income fraudulently. People bought bigger homes and couldn't afford them. Banks traded currencies and flipped mortgages like pancakes to anxious banks in Japan and Europe. We wake up one day to find out that Europe and most of the world community blames America for the melt down and they are 100% correct. Americans alone created the financial boo-boo we are all in now.

The movie Wall Street, while filmed in the late 80's had a good point to drive, GREED was at the root of the entire meltdown and is the single reason why we are in this Buyers' Market now and it was entirely unnecessary. No government regulations on banks or on Wall Street were in place.

Day Traders have secret PROFIT RINGS out there. Just like other secret societies like the Bilderberg Group who's membership has affected the trading of world currencies, politics, banks and fixing the price of oil and affecting how economies are allowed to rise or fall. Secret Day Trader rings go far beyond just giving tips and financial advice. They provide illegal, insider information and like packs of dogs they work under an Alpha to attack and destroy a handful of stocks at one time. They accomplish this by all agreeing to sell or buy one set of stocks for a particular week in order to affect or influence millions of dollars by then going long on some stocks and short selling other stocks. Then they take their profits and move onto the next kill.

All in the name of GREED. And the government has turned a blind eye to this for years.

In my opinion, the US Government needs to put a stop to the ability to speculate on some stocks such as real estate securities and oil. Stick to pork bellies, frozen concentrated orange juice, coffee beans and penny stocks. The price we pay for a gallon of gas today, should be the price we pay for it tomorrow. If we remove the ability for the Day Trader Secret Societies to manipulate the price of oil and attack markets in packs to drive up or drive down the price of a stock -- the World is going to be a more stable place and will be a huge factor in seeing this economic recession end sooner rather than later.

Because several Day Trader Secret Associations were the ones responsible for the $4 dollar per gallon prices last Summer. Thanks to eTrade, Scott Trade, AmeriTrade and many other firms that allow ordinary people to buy and sell stock, it is these firms that have allowed the creation of these Day Trader secret societies to form in order to manipulate prices on Wall Street.

-- bart wilson

Great Points Jeff - I think there are exceptions to Almost every rule, and a "Buyers Market" is too much of a blanket statement to cover all areas of the market.

Notice I said "Almost" every rule, that's because I NEVER speak in absolutes, because there are too many niches to have 1 statement cover all situations.

And Yes, "NEVER" was a joke, a poor one maybe, but a joke none the less :)

Buers are showing up with unrealistic expectations. It takes some time to educate them. I point out if the price is really that good everyone else is seeing it too.

Very good post and yes I too wish the National Media would do just that and report "National News" and stop labeling local news such as real estate as such. It was an eye opener when someone finally did some research and found out that all the real estate problems were basically 5 states and the rest were only slightly off.

It is definitely a prepared and patient buyers market. There are great deals in every market for buyers who are willing to wait and put in a fair offer.

The days of being able to put offers in at 20% below asking price are over mainly because the listing prices have come down to accurately reflect current market conditions.

In Las Vegas there was a house that was listed at $130k and accepted an offer of $110k. Now, the same model in the same community is listed at $110k.

It is all relative. Compared to the asking price is today the sellers have some control and there is demand. Compared to what many of these houses sold for 2 or 3 years ago they are deals.

It all comes down to how do you define a buyers market.

I agree completely. All real estate is local, and not all regions within your local market will be "buyer's markets."

Tammy - It seems we are seeing similar trends in many areas.

Michael - good way to look at it

Kerry - good for you. This appears to be true in many other areas, based on the comments.

Jeff

Jeff I couldn't agree with you more. Granted, the market is tougher for sellers at this time. However, I've seen and experienced more than one instance where multiple offers came into play (even in the current market). Real estate is truly NOT "one size fits all."

MAY

2009

Jeff,

The market is what it is, locally.

Buyers fighting over foreclosures certainly says it's not a buyers market in that area anyway.

Sellers are listening and pricing their homes correctly or removing from the market.

Good values do sell....in most any market.

Lisa - Banks' Market! Yep, I would say that is tru, especially in some inaldn areas.

Realty Dot Com - guess that's true. But it's a reflection of what is happening in many markets, adn why calling it a buyer's market oversimplifies the reality.

Carol - ah, more consistency here in CA. Yep, it's all about knowing the market, as best we can.

Rich - pricing shorts - like that analogy.

Jeff

Lise - I find that it can be difficutl, despite what we tell folks, for them to always get it right away. Some just need to learn. And I try to point out specific examples where homes are going quickly AND at or over asking.

Svetlana - that is tru here too, even within a single community. It varies from price range, too. Hard to classify in any sort of cimple way.

Marilyn - fun to hear your comments about my old stomping grounds from 4 years ago. I think we are finding similar stories in most places in the country, to some extent, based on everyone's comments. That, is part, was the reason for the post...to get some other information out here for consumers to see and understand that the market is not necessarily how the media potrays it.

Jeff

ABSOLUTELY- you are 100% correct.

I had a buyer who thought they were in the driver's seat and that she could get things for 20% less!

That was a lesson in education :))

I agree that the term buyer's market has been used too broadly in many cases. I find that in our market the segment of homes that are moving are REOs and short sales, really making it a 'bank's market.' The upper end home market is stalled with lots of inventory and very little movement. For someone in that price range, it would truly be a buyer's market. And the balanced market? We're not there yet, but the middle price range has less inventory so we are starting to see additional activity there. This is where we can really bring value to our clients. Break those stats down for them to a very local (price range, neighborhood) level so they can understand the steps they'll need to take to achieve their goals. Good post!

George - we are seeing more at more at the moment.

Norma - well said. Love the camel.

Chris - that is certainly true here in some market segments.

Shelly - inventory is different from area to area. Some places it is going up and others down. Some buyers are not realistic no matter what the market.

Jeff

Anna - well hopefully posts and comments like this will help get the word out. I think the media could do well to consult local experts to report real time on what is happening, not relying on general reports that are several months old.

Mary - well you have to do what they want, but that tactic just doesn;t work very well, and certainly not with most REO and short sale properties, at least in my area. And in some areas we are seeing fewer REOs and folks are noticing the more limited inventory.

Russ - thanks for the update on Detroit. That's good news for your market.

Anna S - sounds like youhave buyers who have learned a lesson or two.

Jeff

There may be a large inventory in our area now but sellers are not giving up as much so it's definitely NOT a buyers market here.

Aaron - sounds like your market is a little different. Thanks for sharing what's happening in your area.

Claudette - as I said to someone else above, it's fun to hear what is going on in my old stomping grounds. I would say the same it true here for luxury homes.

Dorie - thanks for your thoughts

Dawn - I have seen the same, as well as buyers who ralize they cannot low-ball and get the home they want.

Candace - thanks for your perspective

Lori - sounds like the Boston market ie heating up, at least in some areas.

Sharon - that is a good way to describe some markets. It is certainly a complex housing market in general

Mike - sounds like good news for the Indiannapolis market. We keep saying it to the media that RE markets are local but they don't listen very well.

Jeff

MAY

2009

I think technically a "buyer's market" means there are more properties for sale than there are buyers to buy them That would put most alot of geographic areas under that definition. However, I'm seeing the same thing in the L.A. area as most of the commenters here. Even though there is alot of inventory, well priced homes are going in multiple offers over the asking price and buyers can defenitely NOT call the shots. The higher end listings tend to languish so that feels more like a buyer's market.

William - amazing. Sounds like a huge waste of time. I wonder if they really got a better final offer than if they had been a bit more reasonable.

Christianne - I think we could say similar things about the seller's market when the media starts using that term regularly. That is quite a change in your inventory - good information for buyers to know.

Dan - good points. And I would say that despite the craziness we see in some segents, it is not the overall craziness of the market in 2004 - 2006.

Chris - sounds like things are heating up in your area. Best of luck on that offer.

Jeff

MAY

2009

Jeff: We couldn't agree more. Here in the Denver metro area we did not have the upswing so much so many communities have held or increased their value so "buyer's market" isn't necessary applicable here.

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Jeff Dowler ~ Carlsbad Homes for Sale ~ 760-840-1360

Carlsbad, CA

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Solutions Real Estate (CA DRE Lic. # 01490977)

Address: 6005 Hidden Valley Road, Suite 280, Carlsbad, CA, 92011

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