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How's Your Market?

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Real Estate Agent with RE/MAX Classic Group

Here in Central New Jersey, many agents (and almost every home seller) are refusing to admit or accept the fact that the market is in decline.  Regardless of dropping prices, significant price reductions, larger numbers of expiring listings, too many agents are blaming buyers and sellers and not the market.

It seems pretty obvious that our market has been experiencing a decline of approximately 1% per month since this past June.  There's more than a 7 month supply of imventory while at this time last year, there was only about a 2 month supply.  With more homes coming to market, and most of them priced well above market, it's obvious that the sellers don't understand the market AND the listing agents are failing to inform them.

Gone are the days of taking a listing, even at an escalated price, and allowing the market to catch up.  Gone, too, are the days of letting just the MLS sell the listing.  It's now a market that will force agents to work to get properly priced listings AND attract ready, willing, and able buyers to those listings.  It will be interesting over the next 6-12 months to see agents who have never worked a declining market struggle to adjust or fall by the wayside.

I'd love to hear your feelings on this and share how your market is performing.

Comments(2)

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Victoria Marton
RE/MAX Classic Group - Lebanon Twp, NJ
Your Hunterdon County Realtor

Hi Scott,

I'm over in Hunterdon & Warren Counties (oh yes, and a bit of Morris County) it's challenging to say the least, but hang in there.  I just got an all cash offer on my $649,000 3 bedroom ranch for 5% under asking.  I'm holding my breath for home inspections!

Did you hear with Otteau (www.Otteau.com) said at the Realtor's Seminar?  "CRASH" and it will be this way for the next two years.... The good news is the discount brokers will not be around, and the part timers will also be gone by the time the market recovers.  The only Realtors left when the dust settles will be the cream of the crop! 

Oct 24, 2006 09:51 AM
Sean Carroll
The Get Off Your A$$ Academy - Manhattan, NY
Real Estate Speaker and "Expert" Coach
Scott. Having just presented an offer last night at 94% of list price, and have the seller and the agent tell me the house was worth WAY more than that (right before they signed it of course), I think you are right on the money. Those of us who stay informed and KNOW the numbers, will have the most success in this down market, even if we have to lose a few listings and wait for them to expire before getting them at the right price the second time around
Dec 19, 2006 02:06 AM