This slide was in the Wall Street Journal today and comes from the National Association of Realtors. While we are all hopeful that the Fed's reduction of the Fed Fund Rate by a half point will help with the mortgage crisis, I think this slide can graphically illustrate how important it is for more to be done to help this market recover. It is crucial to consider the impact that this shift is having not only on Real Estate Professionals, but also on everyone involved in the industry. Mortgage Brokers, builders, plumbers, roofers, painters, furniture companies, movers, and others are being severely effected.
Further, sellers must consider this situation and take it to heart. We have so many sellers who are still asking 2005 prices for properties. This slide should encourage them to review thier pricing strategy. If they don't step up and take notice of what is happening in the market, they will miss the boat. If you would refer to my earlier article entitled "Pricing in an Adjusting Market," I explore common strategies and mistakes. If you didn't believe the market was in a strong correction before, this graph should help you step up and take notice.
To the folks who are trying to sell right now: "Price ahead of the market! Do not wait for the person to come along and offer you what the house was worth in 2005. Get what you can now so that you won't be thinking about what you could get today when 2008 rolls around..."
Realtors, please let me know what you think. In particular, what strategies are you using to work with sellers?
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