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The housing market is crazy! (Crazy Good! I think!!)

By
Real Estate Agent with Calif Desert Realty

I have been blogging lately about mixed signals, mis-information (whether intentional or not) particularly from national franchise brokerages trying to paint a rosy picture inside a muddy landscape, and buyers and sellers being VERY CONFUSED about the state of housing market. Is it getting better, or getting worse? Or staying the same?

 

Buyers and sellers are not the only ones confused.... many real estate agents, including myself, are equally confused. Just when you convince a client to lower their listing price, a similar home down the street sells for a higher price (which of course makes you feel like an IDIOT, having just done an exhausting study of "comps"). Then a week later, a similar home sells for a much lower price than where you were advising your client to list at. Then a bank owned on the same street, sells at a HIGHER price than similar comps and a "non-banked owned, non-short sale" sells at a much LOWER price than similar comps. The market is crazy!

For home buyers looking for great deals right now, the longer they keep looking, the better it seems to get for them...... leading me to believe that the market is NOT improving, at least right now, in this La Quinta CA area, and in fact prices are still dropping in many cases as sellers finally decide to throw in the towel, and lower their price to compete with bank owned and short sale listings.....

Adam R. Cohn
STANDARD MORTGAGE CO. - Delray Beach, FL
We actually get mortgages closed FAST!

I agree with you, this is def a crazy market and very hard to understand!

Aug 08, 2010 11:51 AM
Lizette Fitzpatrick
Lizette Realty - Richmond KY - Lexington, KY
Lizette Realty, Lexington KY MLS - Kentucky Homes

You hit the nail on the head.  It is sure a challenging market everywhere.  I would loose sleep over trying to understand our market.

Aug 08, 2010 11:56 AM
M. Suzi Woods (Gravenstuk)
NOW Sharing the life and spice of the GC one day at a time - Grand Canyon, AZ
Suzi Woods, Prior Independent REBroker in MS

Larry, thanks for an honest post.  ( I've had some secret thoughts lately that I guess I will share with you since you are so open:-) Last week I viewed several HUD listings which of course have been formally, professionally appraised. The thoughts rolling around in my head ..."Are you out of your ever loving mind? What planet are you in?" However, it is possible the listing agent and/or appraiser might read my thoughts.  Of course we know a buyer doesn't have to offer that, still, even if the home were in perfect shape... I guess I just eliminated HUD appraisals as a guideline.

I agree with your last statement. Homes are still selling, even if the market is radical. A buyer can still lose an excellent deal right out from under them.

Aug 08, 2010 12:03 PM
Jennifer Pirkle
Harvest Realty 678-617-0715 - Dawsonville, GA
Dahlonega, Dawsonville, Cumming, GA

This market is totally volatile and many sales make no sense.  I have seen million dollar lake homes priced in the low 400'ssit on the market while smaller homes with typical views sell for the same.  There certainly is no standard or set trend in this market. 

Aug 08, 2010 12:31 PM
Larry Hansen
Calif Desert Realty - La Quinta, CA

Wow, you guys are fast! I decided to edit the post as soon as I posted, thinking it was too long, and deleted several paragraphs. Got three responses just while doing that...Lol!

Adam: It sure is...

Lizette: Thank you and I agree with you. Don't lose sleep trying to understand the market, just get out there and do it! Right?  

M. Suzi: Thank you. Yes, it's a double edged sword. We are working with buyers right now, that have lost out on three very good deals that were just what they were looking for. They wanted to wait a few days to think it over, and bam! they were sold out from under them. So..... we just keep looking (and looking, and looking, and looking - at least we are becoming very good friends with them :-)

Aug 08, 2010 12:35 PM
Larry Hansen
Calif Desert Realty - La Quinta, CA

Jennifer: I am seeing the same thing here. Houses that I tell clients won't be on the market very long.... end up still being unsold the next time they come out to the valley to look. And some I thoought were priced high (based on comps and what is selling and not selling) end up selling. And vice versa. Crazy.

Aug 08, 2010 12:40 PM