How's that fence sitting workin' out for ya?

By
Industry Observer
https://activerain.com/droplet/4449

The housing market is in the final stages of a crash and recovery cycle.  For the last several years, many people who wanted to sell their homes and move up to something more appropriate for themselves and their families have voluntarily remained frozen in their tracks.  Many saw their home values drop again and again.  They couldn't believe it was happening.  Ask why they didn't want to make a move, and the answer was often that they just couldn't believe it was happening. 

Now the market has stabilized, and the kids are halfway to the age when they'll be moving out.  They will have survived without the better opportunities that the newer and better home and neighborhood would have provided.  Prices are not dropping, maybe even rising a bit.  The house is not worth what it was worth in 2005, or 2006, or 2007, etc.  It may be worth a little more than last year, but it's not worth what it once was.  In the meantime, that move-up house is increasing in price.  They can't believe it's happening, and they are still on the fence. 

It all reminds me of Bill Cosby's song about a little old man who keeps getting run over by a train and stomped on by elephants (probably donkeys too).  When ha asks why the old man doesn't move, the reply is,  "Cause I can't believe that this happened."   Well, the housing crash happened, and if you're still sitting there in disbelief, you may want to check on your personal progress.  Believe that the house isn't worth what it was.  Believe that there are better places to live than here.  Believe that your life is only going to happen once.  Believe that now is the best time to choose the lifestyle upgrade you deserve.  The alternative is to wait until interest rates and the price of the upgrade home both go way up, and the elephants will again be stomping on you.  Call me if you want help.

 

 

Posted by

 Mike Carlier  Lakeville, MN

 

612-916-3033

 

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Rainmaker
508,787
Daniel J. Brudnok, REALTOR
Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038 - Downingtown, PA
SRES, e-PRO,ABR,GREEN,CSP

Hi Mike,

I too have a few long timer's that have taken too long to face reality......now in panic mode.

Sep 24, 2012 01:23 AM #1
Ambassador
3,155,368
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

People not coming to terms with reality and hoping against hope that their move up home would stay low in price but their existing home would come up in value is what I saw.  A recipe for regret.

Sep 24, 2012 01:55 AM #2
Rainmaker
522,322
Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

Dan, they're facing reality, but the still can't believe it's happening:)

Chris Ann, in the remote not-quite-possibility that it actually happened that way, there's a good chance that interest rates would change enough to make up the difference or more.  It's amazing how hard some folks work at remaining unhappy.

Sep 24, 2012 02:09 AM #3
Rainmaker
3,985,513
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

In my area, the fence jumpers have already made money on the homes that they bought even a year ago.  Now, prices are starting to go up.

Sep 24, 2012 04:40 AM #4
Rainmaker
647,193
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

There are some that are still unable to refinance or upgrade because of the market.

Sep 24, 2012 10:52 AM #5
Rainmaker
522,322
Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

Bill, that's remarkable, given the acquisition/disposition factors.  There are still too many gun-shy consumers.  Not only are there a lot of fence-sitting homeowners, but also fence-sitting investors.  Even though the equities market is up somewhere north of 70% since the 2008 crisis, there are still investors sitting on cash, losing part to inflation every day.

Kathy, there will always be people who cannot make the real estate lifestyle changes that they would like.  There seems to be a large number who are able and can't make the commitment to themselves and their families.

Sep 25, 2012 12:24 AM #6
Rainmaker
3,985,513
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I had a guy call me the other day and asked if we have hit bottom yet.

I told him 2 years ago and he went into a panic.

Sep 14, 2013 09:22 AM #7
Ambassador
2,974,424
Anna Banana Kruchten Arizona's Top Banana!
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Mike we don't have any of those folks left in my neck of the woods.  The writing was very clear on the wall and several years ago they all figured out it was for real.  Many, many have moved on a long time ago and more are making the choices now.

Sep 14, 2013 09:54 AM #8
Ambassador
1,155,745
Bryan Robertson
Los Altos, CA

I ran into a guy I had met years ago who, in the middle of the Silicon Valley red-hot market, still felt it was a bad time to buy.  That kind of guy will never make a good decision and probably is wasting his agents time for years.

Sep 14, 2013 10:13 AM #9
Rainmaker
503,852
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Those fence sitters are now getting caught in with rising mortgage rates.  Our market is seeing alot of those and they're in danger or being priced out of a home.

Sep 14, 2013 01:55 PM #10
Rainmaker
217,525
Yvette Chisholm
Long & Foster Real Estate, Inc. - Rockville, MD
Associate Broker - Rockville, MD 301-758-9500

What an awesome post.   I remember one of my colleagues teaching me that inaction is a decision and often the worse decision than any mistake that you can make.  Rents are rising like crazy too.  I told a client recently wouldn't it be better to be stuck in a house you like rather than a house you don't like anymore?

Sep 14, 2013 02:09 PM #11
Rainmaker
1,539,302
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

Those who await a large volume of evidence of a market change have it.  Now, they will sit and wait for the next change...in five years or so, right?

Sep 14, 2013 09:44 PM #12
Rainer
367,227
Raymond Denton
Homesmart / Evergreen Realty - Irvine, CA
Veteran Friendly Realtor®

Well said, Mike.  I like your style.

Sep 15, 2013 01:52 AM #13
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Rainmaker
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Mike Carlier

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