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Buyers Market? Nope. Sellers Market? Nope. Neutral? Yup!

By Stanley Barsch

Real Estate Agent with Realty Executives Premier

June 10, 2010 03:35 AM

Buyers Market? Sellers Market?

If you poll buyers and sellers agents, I'll bet you a penny that they will be split on what kind of market we are in. Quite honestly, I represent both sides of the table here in Maryland & DC and I think we are in a neutral market. I'm crazy right?

First and foremost, the tax credit added a big boast to the real estate industry as a whole. I think at the end of May, when first time home buyers came to the realization that the credit was really going, it created a small frenzy.

The current market is still dominated by short sales and foreclosures, without a doubt. It is in my own professional opinion the best time for anyone who is considering buying, to buy.

Buyers are enjoying the ability to get homes at below market value prices, and close the deal with remarkable interest rates. Beware, just because that foreclosure is priced $100k below value, that doesn't mean the bank is hard pressed to get rid of it that quickly. Banks are looking at their bottom line, and usually under priced homes means an escalation clause or a bidding war. It's a numbers game, and the banks are in the driver's seat, not the buyers. Traditional sellers are pricing their homes aggressively these days and most have accepted current market trends.

Sellers are benefiting from this market as well, primarily because they already took the hit over the past few years. Where we are at today, it pretty much is what it is. There are two types of sellers that are setting the pace for a steady market: the traditional seller who may have purchased their home at a great price -or- over a decade ago, and the seller that is looking to purchase another home. The traditional seller with equity in their house, percentage wise have done great with their investment. It may not be the grand payoff it would have been in 2006 or earlier, but it is darn good overall. The seller that is looking to upgrade or downgrade, are seeing their loss in their current house, as a gain on their next purchase which may be well below market value.

Personally, I like the current market we are in. Do you think it is a win/win situation?

Regards,

Stan Barsch

www.stanleybarsch.com

Stanley@lnf.com

Cell: 240.882.8512

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Vanessa Calhoun

PalmerHouse Properties & Associates, LLC - Atlanta, GA

Your Greater Atlanta Marketing Guru!!

I'm inclined to agree with you. It's a weird place to be, but it's the reality of many current markets. Buyers have to understand that most foreclosure in the Coweta County/ South Fulton markets where we primarily work are priced to solicit multiple offers. In fact, in Coweta County, HUD has just listed a 3 bdrm/ 2 bth home for $55,000. LMS within the neighborhood was $120,000 and area comps fall around $120,000- $140,000. The property is in good condition and move-in ready.....will a buyer actually be able to bid $55,000 and get the property???? I don't think so. It'll be interesting to see the actual number of bids and the price of the accepted bid once the dust settles.

Jun 10, 2010 03:40 AM

Wanda Thomas

Montana Homestead Brokers, Broker, CRS, GRI, SFR, RN - Billings, MT

Billings Montana Real Estate

Our market here in Billings Montana price wise, is very stable. We might have had a total of a 4% drop in some price ranges, but others (the most popular) continue to be steady. What we have seen is a decrease in the actual number of home sales, by about 30% from a couple years ago. If you look just at the present activity, I agree that the unclosed homes sales from the tax credit hangover, have made this a more balanced market and reduced our inventory in the under $250 price range.

I like the point you've made about the longer term homeowner's position. There has been a sudden death of the serial homeowner who could buy and sell a primary residence every 2 years and pocket cash free of capital gains tax. But the folks who've been in their homes 5 or more years right here are in a very good position if they haven't over borrowed on HELOC loans.

Hope things continue well for you in Maryland!

Jun 10, 2010 03:44 AM

Stanley Barsch

Realty Executives Premier - Silver Spring, MD

Realtor, GRI - 240.882.8512

Vanessa - Thank you very much for the detailed response. Wow $55K in a $120-$140K price range, the picture is painted right there. Sad part? It will sell for $150k+. You're ahead of the game, keep up the good work. I wish you luck down there in Atlanta.

Wanda- Thank you also for the detailed response. You are correct about the 2 years and out deals being gone! I have no doubt in my mind that it will come back in the future, especially with the 80-10-10 loans and FHA 3.5% down plans. The thing I am very happy about is that lenders are not affraid to say "no" these days. I wish you luck up there in Montana.

Jun 10, 2010 03:02 PM

Nick T Pappas

Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL

Madison & Huntsville Alabama Real Estate Resource

Stanley, the market here has always been slow and steady so we weren't hit as hard as other parts of the country. I think the problem here was for the most part created by individuals relocating that couldn't sell their homes elsewhere. We never used to see contingent offers, but the last 1 1/2 to 2 years have seen a sharp spike in them. Of course we had to deal with foreclosures and short sales, but we really don't see as many as before.

I would have to agree with your characterization of a "neutral" market...except we still have some buyers that are asking for the moon...it takes them a few missed opportunities, but the are getting it.

Jun 10, 2010 04:46 PM

Rodney Mason, VP of Mtg Lending

Guaranteed Rate NMLS# 2611 - Atlanta, GA

AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,NV,SC,TN,TX,VA,WA

In GA, I am seeing multiple offers on some REO properties. Many are going over list price on top of that.

Jun 10, 2010 04:50 PM

Buyers Market? Nope. Sellers Market? Nope. Neutral? Yup!

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