Even though we had a late snow today, email, showing and phone activity reflect the fact that buyers are coming out of hiding. I even received an offer today on a resale listing and it's not distressed or below market! We aren't even that far off!
MLS stats have shown that we have been about 1000 to 1100 units under inventory for the past six months, around appx. 5,000 units vs. appx. 6,000 for the period in 2008. It's real obvious out on the streets that inventory is thin.
Our foreclosures here are in good supply, however the aggregate age of these properties is pretty old. Not a whole lot of empty subdivisions in these parts, just sporadic pockets of distressed homes from the late 1800's up to the 1980's. There are some newer foreclosed homes, town homes and some brand new condo projects up for sale, but I think buyers are leery of new town homes or condo units that are foreclosed due to the uncertainty of how they will be managed and by whom. Additionally it seems like the newer homes often come moldy or with some pretty heady pet odors.
Having presented a large number of listing proposals this year, one fact is pretty standard, little or no equity. Reasons: 1.) Refinance-equity stripping 2.) Selling a home bought in the past three years. 3.) Seller overpaid slightly hoping prices would rise, and they didn't. 4.) Market values have declined and will not deliver an acceptable price.
Sellers are pretty consistently armed with two things: 1.) An inflated assessment 2.) A worthless appraisal. I often find myself the bearer of bad news, and even though Sophocles admonished "Don't shoot the messenger" in about 450 BC, I think some folks did not get that message. Playing cleanup is not for the timid, and the truth business is lot harder than a con.
Still though it is spring and it seems from the MLX hot-sheet that inventory is ticking up slightly. It'll be interesting to see what the March stats say. Until then it's back to basics, the phones, email and the offer on the table. I love spring.
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