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Existing Home Sales Slide Further!

By
Real Estate Agent with Adams, Cameron & Co. Realtors

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[ecocharts-exhsales.gif], 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?

Comments (2)

Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos
Hi John,   Important massage and graph for all of us in this market.  Your point of getting sellers to price ahead of the market is critical.  As for strategies, I try to educate the buyers that you make your profits at the point of the purchase.  It seems to focus them on buying as opposed to trying to guess the next market move.
Sep 25, 2007 07:01 AM
Sylvio Leclerc
Daytona Beach, FL
I am in contact with many FSBO's in the Daytona Market and when I am asked what price should they be asking, I ask them what they would pay for their own house, in this market. If they are truthful, and say that they would buy it for their asking price, it's usually pretty close.
Dec 19, 2007 02:39 AM