Buyer-agent eye view: hard to hold the line
I see comments on this blog about how it is a foregone conclusion that housing prices are rapidly headed for the toilet.
Today, I am asking for eye-witness accounts of the market by those that are out there hunting this spring and summer. Let’s document the story as it unfolds. Are you getting great deals or are you getting outbid?
What I am seeing is that prices are still sticky (changing slowly, in fits and starts.) Some say they are going up. Here just north and west of Boston (my area*), demand keeps on in popular areas. It has slacked off in the medium and low-demand zones. I know there are huge areas throughout the Commonwealth, as well as across the country, where foreclosure is commonplace, the shadow inventory threatens, and everywhere seems to be a low-demand zone.
I give you the results of my efforts in the month of July:
All of these buyers had solid financing of 20 percent down or more. I do a market study for my buyers and encourage them to not go above a fair market price. They know what the current market is bearing and make their decisions accordingly. But, it is hard to hold the line when other buyers are blowing the wad. I am not complaining. This is an observation:
Client A made a full price offer on a single family home. The property was on the market for 5 days. He was not asked if he wanted to raise his offer; he was summarily rejected. Another offer was accepted.
Client B made an offer $5000 over asking price, in the second round of a bidding war. The property was on the market for 6 days. (The asking price was below market value, according to my market study. This offer was in market value range, but not over it.) There were 5 offers. He was outbid.
Client C made an offer for $15,000 below asking price (also in market value range.) It was on the market for 56 days. She was outbid by another buyer.
Client D made an offer for $43,000 under asking price. (This was only slightly below market value.) It was on the market for 30 days. There was another offer. Neither was accepted. It is still for sale.
Client E had an offer accepted at $20,000 under asking price only to have the deal fall through after home inspection.
Ladies and gentlemen, in my experience this July, sellers are getting their price or not selling. As a buyer’s agent, I am still waiting for a real buyer’s market. It’s not here yet. I had high hopes for when the tax credit ended. So far, I’m disappointed. Are you, too?
(On Thursday, I am going to publish some figures about the volume and prices in my area* before and after the credit.)
*The towns I cover are: Acton, Arlington, Bedford, Belmont, Brookline, Cambridge, Concord, Lexington, Medford, Natick, Needham, Newton, Somerville, Sudbury, Waltham, Watertown, Wayland, Wellesley, Winchester
