Most people that are selling real estate right now are asking about why things aren't moving or why things aren't selling.
The fact of the matter is, that the market is not as bad as it seems. It is just the viewing publics interpretation that gets skewed. Some realtors are included in this interpretation.
The housing market has not stopped. There are lots of sales and transactions taking place. What we are seeing is an adjustment in prices. I remember taking macro economics in college thinking that I really didn't like the class, because I just couldn't figure out how I would ever use the teachings in my life. Well, I look at it as one of the most important classes I ever took now! I use it every day. If you look at the big picture in life as well as real estate it becomes more clear.
When I first started real estate, the web was merely a phenomenon that one or two agents used. Now it is how real estate is said and done. Which has made everyone an expert! There are upwards of 22,000 odd realtors in the Twin Cities alone. That mirrors the number of citizens in New Brighton! Why? Because it is so easy. Put a sign in the yard, and the house sells. Not so fast! Now with the market turndown, realtors are heading for the hills and trying to reduce expenses. Advertising in local papers has almost stopped. Very few realtors are doing this because it costs money. New "sham" real estate companies are popping up all over town, taking in the large numbers of realtors, promising them no monthly fees. These transaction based real estate fee companies will not survive. They are built on a house of cards. They flat out have the worst producing agents working for them. Not only are they the worst producing agents, but they are the dreaded part timers with little knowledge of the industry. Ripe for lawsuits.
The Big Picture.
More realtors and more houses for sale means what? Lower sales prices, lower commissions (from desperate realtors), lower levels of service, etc.
As of June 14, 2007 Blaine, Minnesota has over 500 some houses for sale. The MLS system only finds homes in groups of 500. Thus, I can't even get an accurate number of homes for sale unless I break it down via sales price. The majority of these listings are small townhouses. Blaine is completely saturated with these. Don't let your kids buy them. I believe these will not appreciate at all in the next 2-5 years!
Here is my quick rundown on what is selling, what is not, what is hot, what is not!
- Single family townhomes 250K and under get a major thumbs down.
- Single family homes 250K and under get a thumbs up. (These are still selling folks. But values have come down as much as 10 to sometimes 20 percent!)
- Single family homes 250K-500K. Families are still moving. These are average right now. Not a lot of activity, but definitely a pull back in price.
- Single family homes 500K and up. Right now, these homes only sell when it is a deal. Were seeing some weak builders drop prices by upwards of 200K! Just incredible!
- Association maintained townhomes 250K and up. The saving grace of real estate. Thank you Boomers! You are keeping our market alive. These have continued to sell well. Anything with one level or detached assoc maintained is selling. ( As long as it is with a respectable builder and a good location!)
To sum things up. Assoc maintained is the way to go, as long as it is one level or detached. Forget about the side by side townhouses they are a dime a dozen.
Realtors. For most it is time to get a new job. For those that actively work it, we have a long way to go, but hang in there. Stick with your respected companies, the others will be blown down by the Big Bad Wolf when it is time.
Cheer up! The local papers are lost when publishing articles about real estate!