It goes without saying that we're all facing a number of challenges in the market right now. Sellers think their homes are still worth prices paid in 2005 & 2006. Buyers think home prices will keep dropping and, thus, make them more affordable.
But one reaction to current market prices makes me scratch my head a bit before I reply.
An associate and I were just talking about showing potential clients various listings in price ranges which would be very affordable to them. In several instances, if the price of a property had fallen recently, the client would say, "Oh, well, something must be wrong with it."
Sure, something was wrong with it...the price!
I don't explain the price change with such curtness, but I do take a moment to explain that overinflated home prices have to fall to levels acceptable to the market. Trying to explain pricing dynamics in a simple way can be a challenge when you want to describe all the economic factors at work right now.
I hope that if you've had a moment to read my blog entry today, you'll share your experiences with clients who need a little education with these market dynamics.