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How Is The Market? It Moves!

By
Real Estate Broker/Owner with Ryan Taylor Homes

Buyers and sellers are constantly asking me, "How is the market?" These day, the question is often more specific: "When will the market improve?"

I'm constantly amazed at the question. The real estate market, is, well, a market. It responds to the law of supply and demand just like any other market. Sometimes sellers have the advantage (in terms, pricing, timing, and so on) and sometimes buyers have the advantage, but houses always sell to someone at some time.

But even though the housing market IS a "market," it is fundamentally different from, say, the market for pork bellies, in that the commodity is the buyer's or seller's home. The impact of the sale of a house is dramatic in that people have to part with a great deal of money (as buyers) or agree to part with their home for a great deal of money (as sellers). They have to make a major life change. They have to move their lives and their families.

So, I guess what amazes me about the question is this: If you have to make a major change in your life, what does it matter how the market in general is? Isn't the question more personal, such as "what are my chances to finding the right home at an affordable price with acceptable terms?" Or, "Can I sell my home for enough money to achieve my goals for my next home?"

As a broker, I often hear reports from agents that both buyers and sellers are "waiting." Waiting for what? If they are truly waiting until they really need to make a move, it's my job to anticipate that and provide support services until they are really ready. But is they are simply waiting until the newspaper tell them that the market is right for them, whichever side they are on, they are going to be waiting for a very long time. And they may never really achieve their true goal which is to live in the place they want where they want.

Comments (4)

Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty
Kathy - Excellent commentary!  The market is always "good" for some and "not so good" for others.  Change is constant.  A Buyers market is good for Buyers. 
Apr 01, 2007 02:06 AM
Christy Powers
Keller Williams Coastal Area Partners - Pooler, GA
Pooler, Savannah Real Estate Agent

That is so true......there really never is a "right" time. You don't know what will happen tomorrow. It could be better or it may be worse....

Apr 01, 2007 04:47 AM
Kat DeLong
Realty ONE Group Mountain Desert - Prescott, AZ
REALTOR

Good post, Kathy. Here's my take on this. 

We have a realtor in our office that actually advertises IT'S A BUYER's MARKET! each week in our paper. Mistake, I FEEL. The market is what is it is. Period. Labeling is bad for all folks: agents, buyers and sellers. 

When buyers hear BUYER'S MARKET, they think "Ah-ha I'm going to get the deal of the century."

When seller's hear that they say "Why list? if I can't get what my house is worth?"

Just tell the truth, if things are slow, say they're slow. If they're picking up, say it. Show the client the stats... figures don't lie.

Makes life easier in the long run.

Apr 01, 2007 09:19 AM