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The Market Is Down...No Wait...It's Up!

By
Real Estate Sales Representative with Castles Unlimited®

At about 1:00 PM I read the lastest economic report filed on MSNBC.com with quotes from economists, Realtors (probably NAR but they just said Realtor) and even a mention of the Federal Reserve all pointing fingers at the possibility that we are either heading for a soft landing in the housing market or a recession...sounds great doesn't it?

Within the hour I received the lastest report:

http://www.boston.com/business/ticker/2007/07/boston_condo_sa.html

which reveals the uncertainty in the market.  MSNBC reported that the sales in the Northeast were dropping as well as the prices.  Now this article claims a "surge" in condo prices in Boston with a 25% drop in available inventory.

So what does this all mean?  Interest rates have risen and will probably rise some more.  Housing will be shakey except for pockets of unexplained growth such as the Boston condo market.  The press will report on the housing market as though ANY metric representation they can seize can actually predict the current and future health of the entire industry.  These numbers change daily and sometimes even hourly so that the real estate buying public can be as confused as possible.

I predict that we will have an unusual occurence in the market for the first time in history.  A "Normal Market".  When has that ever happened?  Probably never did...and I am sorry...my last prediction has changed after less than a minute...ths will be a "Market"...sometimes buyer's...sometimes seller's market...it all depends on the price of the property and the willingness of the buyer to either meet the price...or the willingness of the seller to acept the offer...sooooooo what else is new today?  I wish to let the press know this: "Nothing".

Piero Marinucci
Tiber Creek Real Estate - Glenmont, MD
Well, I'm glad we got that out in the open!
Jul 25, 2007 06:28 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

James... I like Piero's comment. The bottom line, if I could take a stab at this....  50/50   If I get it right, I am a champ. If not, I am on the other side of the fence and I am a loser. Too many variables in a market that has so many directions. Besides, we are dependent on a few other countries that keep our economics in tack.

Me personally?  What I think?  Prices wil hold fast after next month. Rates will come down a tad for the next few months, but will go back up. Rates...the market needs to correct itself because of what happened 2 months ago. And it already has in 2 weeks. So, did the market adjust?  As you stated, it changes daily. And sometimes several times in a day.  Just pick a time to sell or buy....  and make it happen.

jeff belonger

Jul 25, 2007 06:40 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Normal market huh?  Let's see, isn't that when the supply of homes for sale is about a 60-90 day supply at today's selling rate? 

We have 11 months to go.  If it doesn't get any worse.

Jul 25, 2007 06:50 AM
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

All real estate is local.  As much as the main stream media wants there tobe a national market that they can report on, real estate continues to not be portable. 

Prices and sales may be up in one segment, down in another.  Some price ranges may have GREAT growth in one area, and terrible in another.  It just isn't like barrels of oil or even stocks.   

Jul 25, 2007 06:54 AM
James Lowenstern
Castles Unlimited® - Newton, MA
Castles Unlimited. Newton MA Real Estate

Lenn...

Read that article from that link...the Boston condo market is down to like a 4 month absorption rate...so that's what it's all about...market to market...day to day...property to property...every variable you change brings a new result. I hope things get better overall...that's all we can do is hope for improvement and work hard to make things positive for our clients.  Right?

Jul 25, 2007 07:12 AM