STIMULUS PRICING HITS REAL ESTATE

04.09.09

Well, it has happened. (Public) pricing is adjusting significantly around the NW corner and into Mass and NY. You can see two examples in my ad elsewhere in this paper, this week. I have several others as well. It is just the tip of the iceberg and you will see others in the weeks ahead. All agents will have them, but the point is this: it will make "shopping" for real estate more difficult than ever, not to mention "pricing" any new listings.

First, it upsets any methodical value structure, across the entire price spectrum, which may have existed prior to the sudden adjustments just now appearing.

Second, financially "secure" sellers not heretofore interested in listening to their agents suggest any price adjustment(s) to date, may find their home prices disproportionately higher than other similar places that have had such a price change.

Third, every reduction will give further "ammunition" to buyers who think waiting has been, or is, good, possibly further lengthening their looking time.

The counter to point three is that those who have been looking, watching, and waiting for some time, have a great opportunity for an excellent buy. Those ready to act will pounce as they see pricing tumble on properties they have been watching for weeks or months, and realize that the purchase opportunity of a lifetime has perhaps arrived. A few will reap the benefits; many may be left at the starting gate.

My view of the future of our NW corner real estate market has not fundamentally changed. Prices/values are changing, now faster than ever, and when the bottom is reached, a new base-set of values will be in place for a new "business pattern" to begin.

©2009 R. Leech features.