Sellers Market, Sellers Market, Now A Waiters Market
April 5th, 2008 Categories: Real Estate News
Sellers Market
You have heard of a seller’s market. Inventory is low demand is high prices are going up. Listings are getting multiple offers, sellers are netting more than list price even after paying commissions. Things are really good for a seller.
Buyers Market
Of course to be followed by a buyer’s market. Inventory is up demand is low, buyers are getting concessions from sellers such as closing cost, down payments, appliances… Things are really good for a buyer.
Waiters Market
But this waiter’s market, I never heard of it before. This is when the seller’s market is over and inventories are high, interest rates are phenomenal, jobs are strong and yet people are waiting. You have to assume people are waiting for the prices to bottom out. No one knows when the bottom is until prices start going up and that is when interest rates start going up.
The difference between almost the bottom and the bottom is not very much money and not a long period of time. So when you see interest rates start going up it is a good sign that the bottom has already happened.
Salt Lake County Real Estate Market
Now remember Salt Lake County has three markets based on prices. The upper market $500,000 and above still has uncertainty to it, especially in the south end of the valley in places like Draper and South Jordan, Herriman areas. The $300,000 and under is not that soft of a market. The $300 – 500,000 market is patchy.
Check out the chart below, it illustrates buying at almost the bottom. Whether you buy almost at the bottom on the way down or the way up the prices really aren’t any different. The difference is how much your money is going to cost.
Now is it possible to time the bottom? Yes, but not by science or skill by luck. Remember we do not know where the bottom is till the market turns and then we can look back and say where it was.
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Nicely written post. Here in San Diego we have a lot of those waiters as well. I’m not sure when “timing” a market became so popular. Whatever happened to buying a home to live in? Great job!
Don’t forget about the foreclosure market. The thing about foreclosures is that somebody wins and somebody loses. And guess who’s left holding the bag at the end of the dance…WE ALL ARE. Wake up people and realize that it’s all of us taxpayers cleaning up this mess.
Regards,
Rob Lawrence
http://www.battlecall.com
For Salt Lake County the average number of homes sold per month from the period of Jan ’96 to Dec ’04 is 995. The average number during the boom years was 1,433. The average from Jan ’06 to Mar ’08 is 1,098.
In March we had 915 homes closed. So we are approx 92% of the pre boom average, 90.5% of over an eleven year average, 64% of the boom average.
The lowest month was 524 and the highest was 1,978 homes sold.
I guess it hasn’t occurred to you that the volume that is taking place now is more in line with normal.
SLCo 7,821 Active Listings, 1,798 pending. As for counting commissions on pending sales, yes about 77% of those will close. That is roughly $388 Million Dollars in sales volume.
btw Adam I really appreciate all the SEO your commenting brings, keep up the good work.
Cheers , I just stopped by to visit your blog and thought I’d say thank you .