What the heck is going on!!!

By
Real Estate Agent with Realty Executives
Currently we are experiencing a market only fit for the toughest sellers and agents. If you are just thinking of selling your home stay out of this market, if you "MUST" sell go in with eyes wide open. The prices of homes across the Valley have fallen some 20% from the peak of 2005. Look at the maximum price you could have sold your home for in 2004-2005 and check that value against todays pending sales and I believe it will be adjusted to 80% of the highest value. One up side to current market conditions is if you are looking to move  to a new or larger resale home you certainly can take advantage on the buying side of your transaction to make up for any so called loss on the selling side. Currently builders are experiencing "the shoe is now on the other foot" and buyers are willing to use that shoe to kick the seller/builder square in the groin. The sting is still felt by many a buyer from the 2004-2005 market when home lots were being held back by builders to  hold drawings. The lucky few would hand over their cash and pay the newly marked up price. Builders are now willing to give huge discounts and incentives to any buyer ready to sign on the dotted line. Agents too are in a position to gain higher commissions from builders willing to pay large premiums to Brokers for bringing their prospects to the table. These conditions will last for some time, in my opinion until buyers feel an urgency to buy, via home prices on the rise, interest rates on the rise, or rents increasing. Until one of these factors begins to recover we are looking at more of the same,slow,tough,and tight. Best Of Luck! Rex Schofield Realty Executives

Comments (1)

David L. Britt
Platinum Realty, LLC - Olathe, KS
MBA
Rex, I think we are in for a weak market for 12 to 18 months, maybe longer!  Time will tell, but we must look at other alternatives in our markets.  My best to you!
Aug 15, 2007 04:13 PM