Real Estate Market Improves

I want the real estate market to improve as much as anyone else. But, don’t tell me the market is getting better as a part of a negotiation tactic. Local real estate markets don’t get better or worse over the course of a few weeks; they crawl to lower inventory and more affordable prices. It took us a few years to get into this rough patch, and it will take a couple years for us to get out.

America not fared as badly as other areas around the country, but our sales volume has decreased substantially compared to the boom years. With decreased sales volume, we have seen higher inventory and weaker pricing. But, check out the Local Stats category (in the right margin), we’re doing o.k.. Still, appreciation is low or in some neighborhoods nonexistent. Our high inventory makes selling more competitive than it’s ever been.

. . . which brings me back to my main point. I was negotiating a contract recently with a local agent and to justify his seller’s pricing position, he insisted that the market is getting better. His seller would not come down in price because his office is seeing an increase in activity. . .

Well, we see an increase every September for the short fall market and a few more showings is not a sign that our local market is returning to more robust sales numbers. We have to look at long-term trends and they are still indicating a seller’s market is nowhere in sight.

It is difficult to know if the listing agent was merely posturing and advocating for his seller, which is his job, or if he really believed what he was saying. Regardless, the seller did come down in price and we got the contract together. In a buyer’s market, that is usually what happens, i.e., the seller has to come down. This end result indicates. . . you guessed it. . . .that for right now, the market is still pretty much the same.