Picky buyers calling the shots now?
Check out this piece. It argues we are seeing a role reversal of sorts from the bubble years.
Back when real estate prices were spiraling out of control, the seller was definitely in the driver's seat, and maybe nowhere more so than here in Greater Boston.
Sellers called the shots and made buyers jump through all sorts of hoops.
But picky buyers now reign, demanding multiple concessions in search not for the perfect home as much as for the perfect price, the piece argues.
It's an interesting idea - but does it accurately describe the current buyer/seller power dynamic here in the Boston area? I'm skeptical.
Yes, we have lots of picky and increasingly sharp buyers in our market.
But in contrast to Las Vegas or Phoenix, where the bubble years saw the market flooded with new homes, buyers just don't have the same leverage around here.
Besides a few McMansions, not a lot of new homes got built around here during the bubble years. And while there might have been a slight uptick recently as builders tried to take advantage of the home buyer tax credit silliness, it's not enough to make a measurable difference in prices.
(Now of course I have glossed over foreclosures and short sales here, which are increasing inventory across the Boston area. But they are not always as easy to get at, though this flood of distressed properties is providing more options.)
Maybe a more accurate description for Greater Boston is a standoff between buyers and sellers.
Sure, we are seeing lots of price reductions - check out yesterday's post - but Boston area prices are still too high for many buyers.
I hear lots of stories of buyers across Greater Boston trying to call the shots, but I don't see a lot of evidence that it is working. On the contrary, I still see a lot of frustration out there.
But if I am wrong here, feel free to set the record straight.
