Happy Talk

August 28, 2006

Happy. Happy. Happy. Talk. Talk. Talk. Happy Talk. From local notables in our industry:

• The market is still healthy.
• Prices are holding up.
• Most sellers are still getting 97 to 99% of asking price.
• The market is stabilizing.
• We're in for a "soft" landing

Where have these people been? The market IS healthy for buyers. There's just are not a whole lot of them. Prices are holding up to last years values. The "negotiated price" is running 97% of asking price. But, todays SOLD price is down 6% from the peak last year. Remember, the official statistics show close price as a percentage of the LAST asking price. We don't provide (in the MLS) how much sellers have had to come DOWN in price just to get a contract offer.

Grant it, sellers are probably over asking to begin with based on the astronomical increases in the past and the shocking assessor handy work for 1996 based on 1995 appreciation (average assessments increased a whopping 28%).

Is the current market normal? I don't think so. It is very abnormal. The pendulum has reached the other side of its swing. How long it stays there is the real question. Among the good news, interest rates are falling again. The sluggish housing market may become a drag on the overall economy and the great masters at the federal reserve just might fore go raising short term interest rates. Interestingly, the sluggishness is making Wall Street cheer. I may never understand what is good and what is bad. Because, sometimes bad is good.

Anyway, Happy Talk is more fun. Keeps me up-beat. Optimistic. I just wish I could get offers on my listings. Now that would make my clients happy. And, if they are happy, I am happy. Buyers in this market should be very happy. If I had more buyers, that would also make me very happy. I'd really be happy if I had more time to blog.

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