Tuesday, July 14, 2009

How is the real estate market doing?

I get this question about a bazillion times a week. It's honestly the hardest question for me to answer each and every time it is asked. A client and friend just emailed me asking if waiting to list their home would hurt or help them. Here is how I responded.
Will the market get better/worse? Your guess is as good as mine. Buyers are waiting, waiting, waiting but yet some things are selling. There is no rhyme or reason except for price. When a property is priced very aggressively it moves. Everything else is somewhat of a waiting game. Buyers have been looking and watching listings reduce, reduce, reduce. So why pull the trigger when another reduction is right around the corner? Just wait. That is how buyers feel, and the feeling is justified when you look at the evidence out there. Presentation and condition of the property is still as important as ever. No one wants a project. And the nice homes are typically the ones that are selling. Giving clients a time frame has become tougher in the last 90 days. My listings were moving fairly quickly in the first quarter and now I seem to be getting a lot of showing activity but no offers. Does that mean all of my listings that aren't selling are overpriced? I'm not sure I even know the answer to that question right now. I pride myself on initial price positioning but I have been having to go to my clients and recommend price reductions. Not sure if that is indicative of the market as a whole but it's making me reevaluate the price of each and every one of my listings. And unfortunately the numbers still don't offer much of a solution.

I didn't mean to come across as whiny because things are moving. But buyers are testing not only the seller's patience these days, they are testing their own real estate agent's patience as well. It's just how it is and we need to respond to the market! So I'm going to get back to work now!

8 comments:

  1. real estate market is improving so far..

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  2. Exciting real estate blog about Dallas! I know of a certain website which promotes real estate business in the US. This company helps its customers to buy and sell their property. High-end homes and condos are available for sale. Lot of
    foreclosure homes
    are available for sale. The company has a strong direct relationship with banks and financial institutions. It has a strong relationship with the client and makes sure their investment goals are met.

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  3. I hope soon there would be optimism in the blogs as real estate market is crawling its way out of the economic crunch we have seen recently.

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  4. Hey Jeff,
    Good blog. Informational and I like your writing style. I have just begun my blog up here in Collin County. I will include your URL in my "trackback" box on a few of my blogs.

    Business is slow. Bill Remington http://DFWRealEstateAndHomes.com

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  5. The average price of homes for sale in Dallas dipped to $186,167 in the first quarter of 2009 compared to the average price of $203,433 in the same quarter of 2008, but in the third quarter of 2009 as the average price rose to $205,900, despite the rise in unemployment to 8.1% by the end of September 2009. Original article is here at AOL Money and Finance: http://money.aol.com/article/houston-real-estate-market-recovered/740086

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  6. Real estate business can be made profitable and experience will lead to success.I checked the website that you mentioned Mc realton and found it to be really helpful with awesome experienced people managing their clients portfolio.

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  7. Thanks everyone for your insight. I am optimistic that 2010 will lead to appreciation in many cities and the number of sales will also increase. However, I'm not sure the foreclosure numbers are going to decrease all that much in the first half of 2010. As many of you know, all it takes is for one half of a 2 person income household to lose their job and the threat of foreclosure can become a reality fairly quick. At this time that is my main concern for 2010.

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  8. After reading some negative posts I had almost dropped the idea of my new project which is very similar, but now I will bounce back with more energy!!

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