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Some interesting remarks. I can go with the post that it is bad currently because of the widespread effects of fewer sales. They affect more than agents, buyers, and sellers. They affect builders, lenders, inspectors, contractors...that's by far the best argument I've heard so far that justifies "bad". But perhaps it also just weeds out the ones in the field I mentioned that never were true professionals anyway.
1-Houses ARE a commodity. They are a commodity with emotional attachment but still a commodity.
2-Bad is a headline created by the media because it gets a attention. Negative sells.
I think we should get away from the use of the word "bad" or "down" or other negative connotations.
I keep hearing it's a bad market. I must confess that I don't understand. I've heard this repeatedly from the media for over a year now. So I ask, why is it a bad market?
Who is it bad for? Agents, Buyers, Sellers? It has to be good for someone if it's bad someone.
The reason I bring this up is someone in our office meeting was calling it a bad market in our weekly meeting so I started thinking "why is it a bad market?". I find that I disagree with "bad market". There is no bad market. It is a buyer market, a seller market, or a neutral market. None of those are bad but it is what it is. Houses are still a commodity.
So if someone can explain why it is a bad market, I'd like to know because I say RE still follows the supply and demand business principal but it's never bad.
A bad market for realtors is just the opposite of what was going on for your guys 3-4 years ago...remember those days when collectively the commissions were out of this world?
A bad market for buyers is what many experienced for years when home prices compared to historicals were through the roof....
Consequently, many people who have ARM's and looking to sell can't....its a bad market for many because they've been used to double digit appreciation...
I think we should get away from the use of the word "bad" or "down" or other negative connotations.
Well of course you feel that way because your income depends on a healthy housing market......
There were no "cheerleaders" like you for first time home buyers when the market was "great" 3 years ago....correct? Now, many sellers and realtors came out of the woodwork, complaining about the "media" and the "negativity" because the market s**ks....well here's my advice....take the good w/the bad.....you had it good 3 years ago...
Be consistent if you want non-realtors to buy the argument your making...
But is it possible that hordes of sellers paid too much? From what I understand most of the problem is with people whobought just a few years ago and are selling because of their mortgages adjusting up. For those without that problem, well, sometimes "hold" is the best strategy.
Yes and no.
Anyone who has bought in the past 3-4 years is at potential risk of not getting what they paid.
Anyone who withdrew serious equity from their homes may also be in this situation.
Anyone who has made recent and substantial improvements to their home over the past several years is at risk of gifting some or all of them to the buyers of their home, if they have to sell.
Well of course you feel that way because your income depends on a healthy housing market......
There were no "cheerleaders" like you for first time home buyers when the market was "great" 3 years ago....correct? Now, many sellers and realtors came out of the woodwork, complaining about the "media" and the "negativity" because the market s**ks....well here's my advice....take the good w/the bad.....you had it good 3 years ago...
Be consistent if you want non-realtors to buy the argument your making...
I'm not complaining about the market. I think I'll probably finish ahead of what I did last year. The true professionals are doing fine. Personally, I could do with a little agent cleansing to get rid of the ones that don't belong in the business. Less competition, better agents to work with on the other side-both good for me.
So what makes a market bad? I maintain it's a seller market, buyer market, or neutral market but none of them are bad.
In Seattle right now inventory is sky high, sales are way down, but prices have just recently started to drop. It's not a good market for sellers because their properties are staying on the market unsold, and they're in a state of shock that they have to lower prices...it's not a good market for buyers because prices are dropping and who knows where the bottom is?
I think the general consensus, one that I disagree with, is that it's a bad market because prices are dropping.
Why is that bad? Weren't prices way too high ? Aren't lower prices going to enable more people to buy homes? Isn't that a good thing?
It's only a 'bad' market when you have a house to sell and it hasn't !!! When you have quite a few lookers but not even one offer. When the lookers have homes to sell also and don't want to even consider a contigency. It's a 'bad' market when you know you have the best litlle ole house out there and no one seems to want it ! And if you keep lowering the price, soon it will be free.
And it's bad for buyers too. There aren't enough comps to get a feel for current market value, listing (wishing) prices are all over the board based on what sellers need and/or want rather than what they can realistically get, agents are trying to pump up the market so you don't know what information is reliable or not, and so on. It makes it very difficult to feel like you're making a good decision to buy even if you want to. I'm guessing that the few qualified buyers out there are being very cautious, with good reason.
Some interesting remarks. I can go with the post that it is bad currently because of the widespread effects of fewer sales. They affect more than agents, buyers, and sellers. They affect builders, lenders, inspectors, contractors...that's by far the best argument I've heard so far that justifies "bad". But perhaps it also just weeds out the ones in the field I mentioned that never were true professionals anyway.
1-Houses ARE a commodity. They are a commodity with emotional attachment but still a commodity.
2-Bad is a headline created by the media because it gets a attention. Negative sells.
I think we should get away from the use of the word "bad" or "down" or other negative connotations.
I'm sorry, but a "Tony Robbins moment" does nothing for an industry in the long term. A real market can withstand all of the propoganda and negative news without affecting its true value over a stretch of time. Good or bad news simply creates noise in the data. The proper price of a commodity always reaches an equilibrium, eventually.
If anything, bad news would be good in that a bottom would be reached sooner rather than later and we can return to the proper stability between supply and demand. Will some people get burned from the overswing on the down side? You better believe it.
I liked the comparison to constipation personally. Lots of things are coming new on the market around here but nothing old is coming out, so to speak.
Honestly though, we do have some major inventory problems as far as number of units available. One stretch of road in these parts has been deemed the "highway of the unwanted homes". Nice homes, more for sell every month. Another area has been dubbed the "land where signs go to die". But on the other hand, I've never been busier and this is one of the few moments this weekend I've had the chance to sit down and type something. I'm that busy.
So is it a "bad" market? "Tough" certainly. The lower end buyer is all but gone for the time being. The stubborn seller continues to pay upkeep and taxes. At least once a week someone calls begging for help to get out of the house they couldn't afford to begin with. But the caliber of the client coming in the door has increased, qualifed and solid. And with the death march of the inexperienced agents out the door, those of us left behind can now do our jobs at a better level than before.
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