Is the Real Estate Market on the Rebound?

That's what an article in The Californian seems to ask, reporting that the average number of days a house sits on the market seems to be peaking...

Homeowners who sold their houses this spring were able to do so in an average of just under two months, according to data from the Southwest Riverside County Association of Realtors, which represents most local agents. The time-on-market figure, a key statistic, rose from 17 days in the March-to-June period of 2004 to 53 days in the same four months of 2006, but has stabilized, edging up to just 57 days in the last four months.

Read the full article here.
http://www.nctimes.com/..../8_22_547_16_07.txt

The article relies on real estate agents to provide supportive testimony on the notion that the market is picking back up. Certainly, Realtors are going to say positive things about the market, because they need the business. So, is the housing market truly improving for home sellers?

My guess is that what we're seeing are home sellers dropping their listing prices. Whereas before they were asking for way too much, now they are cutting another $20K or $30K off the price in an attempt to expedite their sell. That will shorten the average days on the market, but doesn't mean home sellers are walking away with smiles on their faces.




2 Comments:

  1. Hi Steve,
    My name is Jamie Curtis. I've been a local Menifee resident about 18 years and I've been a Realtor here in town about 13 years and I've seen all the ups and downs in this area.

    I disagree on one point, at least with most agents I know. I don't think most are simply stating things are getting better "just" to get more business. Simply "saying" so doesn't sell houses....

    I have to say that you are absolutely right...unfortunately (for sellers right now) about sellers reducing prices.

    Things have certainly picked up this month, as I've been very busy but yes, it's largely due to sellers drastically reducing their prices, agreeing to pay buyer's costs, etc. "but" it's making things move again.

    One good point to make though is that I saw this happen here back in the early 90's when seller's were reducing prices so drastically it actually set off an opposite affect and sellers would start getting multiple (higher) offers on properties because buyer's thought
    they were such a good deal....

    Once you start getting a few homes that have squeaked through an appraisal, this then seems to start the beginning of prices inching back up.

    It may be a slow process and very unfortunate to many sellers right now, but the market is moving.

    The other thing is that we really do live in an awesome community. I have several clients that are relocating here because of the prices and because we have so many affordable communities surrounding us with lakes and a lot of amenities. I think this community
    really has a lot to offer.

    I do have to agree though that not "many" sellers have smiles on their faces right now....

    What goes up must come down...(in an attempt to stabilize the market). Then we go and start all over again. It's a viscous cycle but that's real estate....

    Just my thoughts :-)

    ReplyDelete
  2. Thanks Jamie, great comments!

    ReplyDelete

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