Supply side economics equates to Supply and Demand. If you are a Consumer... You're right. The "Buyers Market" has not addressed the demand is for workforce housing...of which the market has had little to offer. As the market resistance is increased, the supply of housing at or below median value will increase. What happened in 2005 was created in a buyers frenzy born of low inventory of available housing. Since then, new construction (at record levels) has flooded the market. Builders are now offering fantastic incentives along with price reductions to liquidate excess inventory. Many Realtors, are counseling sellers of existing homes to reduce prices in order to remain competitive in the market. This in combination has resulted in the deceleration of prices and an increase in achievable sales. An Achievable sale is one which makes it to the closing table pending lender, appraisal and inspection caveat approvals.
In Have Buyers Been Playing Fair? This post generated a great discussion with numerous comments on both sides. What consumers want, and what Realtors need to counsel sellers. Should buyers not make lower than asking price offers? Of course they should- how low is too low? In the example cited the competing offer was 30K lower than the last offer presented. It was by the way, rejected and an offer 40K HIGHER the next day was accepted.It was below Asking Price but within reason so that BOTH parties were satisfied with the compromise. The Real Estate process has always been negotiable. The role of a sellers agent is to help the seller get the most money possible for their home. The role of the buyers agent is to try and buy the home desired for the least amount of money as possible.
While some properties are offered at a price too high, they may "whither on the vine" as one consumer commented. Withdrawn or expired listings are testimony to that. We sometimes call them "Market Rejected". Some sellers have set unreasonable expectations of what their home is worth. Value is determined by what the market will yield. It fluxuates, adjusts, and is not constant. There are buyers out there, and sales are being achieved in the present market here in Central Florida.
Realtors have been counseling sellers to adjust the asking prices of existing homes downwards so that successful sales may be achieved. No one can dispute that the cost of building materials and rising vacant land costs will increase in time, thereby increasing the cost of new housing. So the value in existing homes can be adjusted more favorably to the consumer. Resulting in the current market activity. While it is true, there are still many units for sale, the favorably priced ones are selling as some buyers are beginning to discover.
As defined in Wikipedia Opportunity is defined as follows:
opportunity
- a chance for advancement, progress or profit
- a favorable circumstance or occasion
[edit] Translations
- Croatian: pojam
- Dutch: kans f, mogelijkheid f
- Finnish: tilaisuus
- French: opportunité f, chance f
- German: Gelegenheit f
- Persian: forsat f, فرصت f
- Indonesian: kesempatan
- Japanese: 機会 (きかい, kikai)
- Korean: 기회[機會] (gihoe)
- Spanish: oportunidad f
- Romanian: oportunitate f
Opportunity is a great term. It applies for both sellers and buyers. The real trick is in finding the balance for both to achieve equal opportunity. Reasonable appreciation for existing home owners, and reasonable opportunity for current market buyers. There is no good or evil here. Depending on what side of the fence you represent there is opportunity for both sides to come to a meeting of the minds. The word for the day is COMPROMISE.
Let's start this at the 50 yard line.
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