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Oh Crap this is a Normal Market

By
Real Estate Agent with RE/MAX Preferred Inc. Realtors

Is there such a thing as a Buyer's Market of a Seller's Market? Or is it simply that we all let the perception dominate reality thereby allowing the Perception to eventually become the reality.

I personally believe that there is no such thing as a Buyer or Seller's Market. Instead I believe that there is just a Market. Here is what I mean.

In times of prosperity when most homes are selling above market value and often with multiple offers there are many homes that do not sell. The same rings true in a market such as we are experiencing today. The difference is that the perception of the market place has put a damper on those who would participate, { The Buyers }.

The negative perception of our economic well being although it may be quite well founded has given many would be Buyer's a cause to pause.

It is this great pause by many which has created the impression of it being a Buyer's Market. That of many more homes on the Market than eager Buyer's attempting to purchase. The reality is this is a Normal Market. It is abnormal for there to be multiple offers at higher than offered sales price. That is of course the type of market that most of us have experienced over the last several years. That abnormal market went on for so long, for some of you it went on longer than your careers, for others like myself who have experienced many peaks and valleys, I see it for what it is. A point in time!

In this Normal Market there is more work to do. For the true work of a real estate agent is one of Previewing, Prospecting, List and Sale. It is not one of Juggling the appointment book for the high number of Buyer and Seller calls that you have been used to receiving over the last few years of that former Abnormal Market.

It is time we all face the reality of today's Normal Market and attend to its needs. It is time to go back to work, Back to The Basics.

 

Corey Chase
Silvercreek Realty Group - Meridian, ID

You make very good points Herb!  Have a great weekend.

Mar 26, 2010 03:32 AM
Doug Anderson
Tucker Associates Real Estate Services - Danville, CA
Bay Area Real Estate Views

Good post Herb.  This is the "new normal" and while there will be many bumps in the road along the way you have to get up, go to work, have a plan and execute. Have a great weekend. ~ Doug

Mar 26, 2010 03:33 AM
David Monsour
Keller Williams Keystone Realty - Gettysburg, PA
ABR - www.realty-insights.com

It's hard to call what we are currently dealing with "normal" but I do think there is certainly some truth to your post.  Short sales and foreclosures like we have aren't normal.  Distressed properties are making up a large chunk of the market thus creating a less than desirable market.  However 2005-6 market will probably never be seen again.  I missed it so I've have no false hopes or perceptions of what the market "should be like."

Mar 26, 2010 03:34 AM
Craig Richardson
National Realty - McLean, VA

This is just a strange market.  I went from buyers sitting on the fence 3 months ago to losing out in multiple offer situations.  And, I even pulled out an escalation clause yesterday for an all-cash buyer.  I just wish it would make up its mind.

Mar 26, 2010 03:39 AM
Herb Hamilton
RE/MAX Preferred Inc. Realtors - Portland, OR
Real Estate Broker ,CDPE, Downtown Portland

Thank you all for responding. The " NEW NORMAL " is not the same for us all. It never was. Although we do have Short Sales and Foreclosures here in the Portland Metro market, and they do have an effect on sales price, they do not primarily motivate Buyers. That is to say that out of the vast majority of Buyer's who call on a property, Most call on the House they either found online or by drive by.

Mar 26, 2010 04:44 AM
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
Eugene Oregon's Best Home Search Website

Herb -

You are so right.  This is a normal market.  Case-Shiller Index prices for Portland are now right on track with 1987-2004.  2004-2008/9 was the anomaly.

Mar 26, 2010 08:08 AM