Or, “how bad is the market?” Yep, we get asked that all the time.
First, let me say that we are busy. Our business has been very steady since we started selling homes in 2001. We’ve always looked at this as a business, not a hobby or something to fill our idol time now that the kids are grown (or after retirement).
Buyers and sellers look to us, asking if we can help them “time” the market. Unfortunately, those predictions are difficult to make. However, part of my standard answer for the last few years has been that Michigan must create jobs for our economy to experience a major turnaround.
This week, Max Broock’s managing broker in the Birmingham office, Jon Swords, took out a full page ad in the Eagle saying that he gets the same questions. I liked his answer.
As a positive trend in today’s market, Swords thinks that sellers do understand the importance of pricing. From my standpoint, this is almost true. I do still see a few sellers who do not want to accept current market prices. Unfortunately, the market passes them by, and their homes are still on the market years after they begin.
Swords also thinks that agents are better at working with the market, handling short sales and displaying listings on the web. This too has some truth to it. Yet, I still see huge differences between the way individual agents use the web to market their listings. Dmitry and I have worked hard to make this be at the core of our marketing strategy since we entered the business. Our listings are on multiple sites with photos, virtual tours, longer descriptions, etc. We use social networking sites to expand our presence in the market. Every day I come across listings in the MLS with incomplete descriptions and one photo. That makes my job harder if I am working with a potential buyer.
There are uncertainties in our market, but a few things are true:
- Buyers have more purchasing power today than at any time in the last decade.
- Interest rates have fallen, further extending purchasing power.
- The skill set that your Realtor brings to the table are increasingly important, whether you are a buyer or a seller.
- There are options for sellers, even in a tight market.
- Well priced homes in good condition are still attracting buyers.
More than once in the last 12 months, we have had listings that had multiple interested parties. It still happens.
Whether you are a buyer or a seller, there are opportunities for you.
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Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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Russ 01.29.08 at 1:56 pm
I wanted to ask a mortgage question about he opportunities to buy at distressed prices. Idesa rehashed from the CBS news special house of cards…
I was fascinated by seeing recent talk by “calculated risk” (is it a “bubble blog”?) of the game contemplated by people walking away from mortgages. Musical houses may be next?
That’s where you walk away from one overpriced house at nearly the same time as you buy a foreclosed (or REO) property nearby for a lot less. Then your neighbor can move into your house doing the same thing, and so on …
When the music stops playing everyone who actually wants to live there has moved a short distance into a probably comparable house at a fraction of their former house price / payment.
In the past apparently opportunities arose to do this in ‘mill towns’ or ‘company towns’ when a major negative employment event occurred causing housing prices & demand to drop. and occur they did! Within the span of a few years everyone shuffled into similar houses at a fraction of hte previous price.
If you have a job, plan on staying, and are not generally dependent on credit scores to finance cars, etc. then it may be worth the potentially enormous savings if you have a large non-recourse mortgage. I guess you have to purchase the second home (at like 50% off) with a good down payment (cash) prior to walking from the first. I don’t know how this can be pulled off (the details) but it has happened so i’m told. Like a game of musical chairs.
Anybody know if there will be opportunity for home-debtors to do this again in steeply-depressed priced markets in Michigan today? I have excellent credit!