Tuesday, July 25, 2006

Buyer's Market

CNNMoney confirms what we already know. It's a buyer's market in housing right now.
  • It's official - even the nation's leading group of real estate agents now says it's a buyers' market in housing, as a soaring supply of homes for sale means nearly flat prices and longer waits for sellers.

My friend has been trying to sell his house for the past 2.5 months because he accepted a job offer in another state. At the 60 day mark, he lowered his asking price by $40,000. And he's thinking of lowering it even more. His realtor told him that since early June, 150 houses came on the market within the same price range within his town. And only a handful have actually sold. So, he's facing some stiff competition.

And as I mentioned in a previous post, I'm thinking of putting my condo on the market next spring. It's probably an understatement to say that I'm just a tad bit worried.


mapgirl said...

I hear you. I don't think I'll be leaving my apartment soon, but it's kind of sad to hear that my 20% gain on paper is eroding pretty rapidly. I was hoping for flat price growth, not falling prices.

I have fantasies of joining my family in California, but realistically, not any time soon. Just enough time to watch this market kind of settle down first.

Gigi said...

I'm looking at selling (or maybe renting my place) next spring. Hopefully Chicago area will not be affected too much.

LAMoneyGuy said...

I have been of the opinion that we are in a housing bubble since late 2004, so take what I have to say with that in mind.

I think we are in the early stages of what will be a painful decline, especially in certain bubble areas. Most notably CA, FL and NV. But also Boston and Chicago.

The realtor industry fed us the same "soft landing" "back to moderate price growth" stuff that the wall street analysts were selling back in the late 90s.