January 10, 2008
Inventory continues to climb, as the percentage of
'solds' continues to drop. We are in a strong buyer's
market and will remain here for while. Prices are falling
and will stabilize this Spring.
The next probable opportunity for a healthy seller's market
is Spring 2009. It is very interesting to look at the
history of homes on the MLS. Many homes that are still for
sale from last summer/fall have experienced major price
reductions. I have seen many homes priced around $300-$500k
drop their prices $30k-$70k. Like Walmart, prices are
falling. However, I do feel they have hit the bottom. The
speculative bubble has burst, I believe, taking with it lots
of money and dreams.
Musical chairs has ended for the many "get rich quick" real
estate investment groups in Utah County. Most of these
groups promised high monthly returns based on the defunct
business model (often complex pyramid) that the market will
continue to perpetuate a high appreciation and new victims.
If you must sell a home in today's market, throw away your
appraisal and any hopes of last season's prices. That was
the past. If I can say this politely, "Get over it." Price
your home correctly in this new market, and your home will
sell. When you get an offer, don't be too greedy (like us
Realtors). Be realistic and flexible enough to get your
home sold.
The buyers are out this January in full force. I think many
buyers feel that it is a great time to buy. Our team
member, Dave, landed offers on two of our listings just this
week from his own buyers.
The first 10 days of January have been busier than the
entire month of December. I am really excited about the new
amount of buyers moving into the January market. It snowed
6 inches last night. It is a very bullish move to see
buyers this early. I look forward to the 2008 market with
great anticipation. The Spring market will be better than
the media and sooth-sayers claim. I consider this
market a great time to buy.
Paul Teasdale
Re/max Results