Clean and Sober: September Statistics and Some Personal Thoughts About the Market
You know the saying: “Admitting you have a problem is the first step in solving it.” Well, in the Pacific Northwest section of the Seattle Sunday Times (Oct. 12th) the CEO of Windermere Real Estate Services, in a moment of perfect clarity, called it like it is. Quoting a blog post of one of his agents he wrote: TAKE YOUR HOME OFF THE MARKET (click the text for a larger view).
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Mr. Woods has spoken words of wisdom in a market place drunk on greed and delusion. It’s time to sober up and come clean. Right now, lots of sellers need to sit down and ponder their motivation for selling. If it isn’t absolutely necessary to move, then consider staying put. How simple can it be? Anyone following the news knows how crazy things are right now. It’s time to start thinking clearly about life’s fundamentals and make decisions based on a long time perspective. There’s nothing new in this.
Here are the numbers for September sales of single family homes in King Co. (click on the picture)
Overall, it’s not the end of the world. Sales in King Co. dropped 23% from last September but HOUSES ARE SELLING. Keep in mind that in order to sell a home, it must be “dressed for success,” marketed well and priced appropriately. In September, homes sold for 7% less than a year ago. If you’re not willing to pay the price to enter the market at this time, don’t. I believe that after the national election and after the banks and government have worked through the financial crisis (this may take several months), we may see the credit markets loosen up and start lending again. Until then, relax, enjoy your home and think about a better future.
October 15th, 2008 at 1:40 pm
I don’t really agree with his statement that it’s best to take your home off the market right now. Common sense tells us that you cannot sell high and buy low at the same time, right? I would think that it’s not a half bad strategy to sell for lower than maybe you’d like if you could buy into something better for lower than you ever thought possible. Just as an example, if your $300k house sells for 10% less than you want, you’ve “lost” $30k. If you buy a $500k house that also took a 10% hit, you’ve just “saved” $50k. When your $300k home begins appreciating in let’s say 5 years from now, and it goes up say 5%, you’ve made $15k. Chances are that $500k house will appreciate more since it’s a nicer home, but even if it only matches the 5% appreciation, you’ve made $25k.
Folks trying to time the market and sell high and buy low need a reality check, but taking your home off the market isn’t necessarily the best answer, and certainly isn’t the only one.
October 15th, 2008 at 2:15 pm
Hi Matt - I agree that not everyone should take their house off the market. After all, there are those who must sell (relocation, divorce, etc.). I also agree that there are some (not many) buyers in the current market who have qualified to move up, taking advantage of a cheaper, larger home; however, we have a HUGE inventory of homes languishing on the market with few qualified buyers. In a previous blog post dated Oct.10th entitled “Reality Check: A Short, Sharp Analysis of the Local Real Estate Market” I wrote that the inventory has been overpriced for over a year now. Many of the new listings are coming on the market overpriced as well. It seems that lot of sellers and their agents aren’t really paying attention to the current market. Perhaps Mr. Woods should have said something like: EVERYONE LOWER YOUR PRICE BY 20%! That would sure get things hopping…….
October 15th, 2008 at 8:24 pm
I’ll admit I didn’t read his article first…I just read into the premise. Seeing the addition that the home needs to be priced right and in prime condition is right on. I should have read the article before commenting!