? Slowdown in new households bodes ill for housing? |
| A conservative banker ?
November 07, 2005
The Westchester Tease
Pimco, the big money management firm, has had representatives out riding with real estate brokers in 20 major metropolitan markets across the country to gauge the state of the housing market. The initial results of their labor are in. Pimco notes that although asking prices are being reduced in some markets, that may not always mean people are selling their homes for lower prices. After participating on several "ride-alongs" in tony Westchester County, New York, for example, Pimco observed that homeowners were sometimes listing their properties at 15-20% above what their brokers were suggesting just to see if they could get that price. If buyers balked, they didn't sell. Their agents must love them.
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This is no surprise, greed is always highest before a correction.
Looks like Florida is starting to feel the effects of the slowdown. In my travels up north every realtor sign said "reduced". Article in the local paper last weekend said Florida is a buyers market for the first time in 4 years.
Could we be in the midst of a slowdown and not even know? Reminds me of Q3 2000 when GDP was a paltry 1.X% yet everyone thought the economy was doing so great. We found the rats nest the following spring of 2001. Will housing be the rats' nest next spring?
Posted by: Wes at November 9, 2005 12:06 PM
Great Story! True, now that a year has passed since this story came out, finally sellers are starting to get more realistic. Even in a slower market, if the seller permits the home to be priced right or even better a little under the market value, there will be so much excitement and enthusiasm over it, they will 100% of the time walk away with more than even they expected. The key to getting alot of money for your home is to make the price so attractive to home buyers, that they all come and bid on it. The lower the price the more showings you will get. It is a numbers game. The more showings, the more bids equals more money. More sellers should try it, they will love the results!
Posted by: Mike Luchen - Top 1% Real Estate Agent in Westchester County NY - RE/MAX Power Realtors at March 28, 2007 11:43 PM