Realtors are always walking a tightrope when it comes to discussing pricing with a Homeowner/Seller.  A real estate sage once told me that comparing anyone's home with anyone else's home is like comparing their kids to someone else's kids.  You should probably duck when you attempt it.

We all know that the market has gotten stronger, but "stronger" doesn't mean prices have gone up, or will go up anytime soon.  The best projections I've heard is that if the economy keeps getting stronger, we may see 3-5% increases/year in the housing market.  Lest we forget, in most markets, that's average.  We've seen what happens when home values skyrocket --- and this country cannot afford another economic meltdown.  Anyway, I digress.

A few of my clients decided to take some time off, after their homes spent months on the market with few showings and no offers.  It was certainly clear the prices were far too high, and we agreed to re-list the homes in early Spring.  Well, it's Spring (not early Spring, but beggers can't be choosers). and we had our pricing sitdown/come to Jesus meeting.  Unfortunately, there had been a metamorphosis since I last saw them.  They were happy --- actually happy!  Both couples had been watching news programs that told them the housing market has heated up, and this is the time to sell.

Ok.  I explained that by "heating up," they mean more buyers are actually making offers.  What they didn't mean is that prices have gone up --- at all.

"Oh, no, that's not true, You Realtors are so negative.  We need a Realtor to believe in our home."

Ok. I believe in the Easter Bunny, but I still fill my own basket.

While I'm thrilled the economy is (slowly) getting stronger, and certainly that buyers aren't sitting on their wallets, I'm also a pragmatist.  If a home was listed, last year, at $1.6 mil, and it didn't sell, I can pretty much guarantee it isn't worth $1.6, this year.  Probably not $1.5 either.

I have to re-read How to Win Friends and Influence People.

 
This post has been included in New Jersey Real Estate News Bergen County, NJ Real Estate News Franklin Lakes, NJ Real Estate News
Post is included in group: RE/MAX Active Rain Bloggers
Post is included in group: Dedicated Bloggers
Post is included in group: Realtors®
Post is included in group: Agents who want REFERRALS!
Post is included in group: Local Expert

3 Comments on But I Just Heard CNN Say The Housing Market is BETTER!

APR
04
2012
510,288 Points 8 Featured Posts Outside Blog

The market is better, but we will see a year or so of stagnant prices before any appreciable gain... That's what happened last time I saw a down turn...

of course- when we do turn that corner, traditional price increases of just a few%/yr dont seem like much, but that is healthy growth!
10:34am • #1
3 Featured Posts Outside Blog

I would respectfully disagree.  When the '87 stock market crashed, my home was selling for $1,165,000.  We waited too long to accept the offer, and it sat on the market until 1991 when it sold at $715k.  It took 15 years for that home to be worth over a mil. again.  And this market is far worse.  The luxury market is down at least 20% with no sign of it getting better.  I think the days of conspicuous consumption in housing are over.  Buyers in my market don't want huge --- they want beautiful and newer.  The 80s homes are languishing on the market.
11:58am • #2
APR
05
2012
510,288 Points 8 Featured Posts Outside Blog

Kate, Maybe I did not make my point clearly...

I agree with what you said... and what I tried to say in my comment is that housing prices will be stagnant for at least a year before they begin to go up, and even at that point the up will be small - normal/healthy appreciation that is typically just about 2% a year.  Historically RE increases are pretty close to the same as inflation... it is the crazy ups (like the 80's and early 2000's) that cause the bubble to burst because the market can not sustain that type of appreciation.

And I do agree, buyers are not looking for the McMansion as much- That is one of the good things about the recession... People are saving more money, thinking before they spend - and the move up buyer is more likely looking for quality over quantity as well.
7:32am • #3


What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 
Mc_0810d_agent_conover1 Rainmaker_large

Kate Conover

Franklin Lakes, NJ

More about me…

RE/MAX Properties

Address: 73 E. Allendale Rd., Saddle River, NJ, 07458

Office Phone: (201) 825-6600

Cell Phone: (201) 264-4417

Email Me



Listings

Links

Archives

RSS 2.0 Feed for this blog