Freaky Weather And A Funky Market
The month of March is about over but winter is holding on tight as we have unseasonable snow and cold temps. The general housing market in Seattle and the surrounding areas of Bellevue , Kirkland , Sammamish, Issaquah, Snoqualmie and North Bend are all feeling the brunt of what the locals are calling a slow market.
Compared to many local markets we are still holding our own, in terms of values, but sales are off and inventory is building. Will the summer bring relief? Many are saying, no.
Foreclosures are up in the south end, (Renton , Tacoma , Auburn
With rumors flying about Washington Mutual’s next round of layoffs ( no one left in the mortgage dept to layoff, so the deep cuts are coming) with an impending 5 to 12 million dollar write down on its way, things are looking pretty gloomy on the mortgage front, which is causing buyers some headaches when trying to qualify, which in turn is causing homes to remain on the market longer and price reductions to become the rule of the day. By the way WAMU stock is now near $10 a share, from $40 a share last summer.
"Is it a buyers market yet?" one client recently asked me, tongue in check. "You have tremendous power right now", I replied, "if you can utilize it, there are some great deals to be had".
But like so many potential buyers choosing to sit on the sidelines and "wait it out", she was one of them
Wait out what? Fear, fear of recession, fear of job loss, fear, fear, fear. All the old fears that always crop up in a market like this one. Its our fear that holds us back, except for the brave buyers willing to buy and hold. Now there is a smart way to "wait it out", if you can swing it financially.
As sure as I’m writing this blog the market will even out and return to “normal”, and home prices / values aren’t going to stay down for any appreciable length of time, but I yell to the wind, no one else is listening. That’s OK, I’m patient by nature.
One of my sellers recently asked me, "How do I maximize my profits and still get my house sold?". Wrong question. The real question is what is the market price of my home in a declining market? Ah, there is the trick, valuing a home in this market.
Me? I hire a pro for my sellers, a real wake-up call for most of them, but having an independent appraisal in hand is invaluable in this market.
If a home is presented well, and I mean really well, great curb appeal, nicely staged and de-cluttered inside, no glaring maintenance issues ( like a new shingle roof being needed) and, and this is the BIG and, if the home is priced CORRECTLY, then selling it is no problem.
In fact buyers will come out of the woodwork and line up to buy fairly priced home that shines outside and in. For the right house at the right price, we still see multiple offers and homes being sold in three to four days or within a week or two. The rest, just sit and wait, like poor performers waiting to be picked.
Clearly there is a disconnect between the sellers and buyers. I have been counseling my sellers and those I have been called in to council for other agents. I tell them if they aren’t dead serious about selling, take it off or don’t put it on the market, you are wasting everyone’s time. Its tough love, but when the market changes, you have to change with it, or wither on the vine.
In the next installmentIll
http://www.seattleshomesearch.com
You can find great local Seattle, Washington real estate information on Localism.com Rich Hamman is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.
Compared to many local markets we are still holding our own, in terms of values, but sales are off and inventory is building. Will the summer bring relief? Many are saying, no.
Foreclosures are up in the south end, (
With rumors flying about Washington Mutual’s next round of layoffs ( no one left in the mortgage dept to layoff, so the deep cuts are coming) with an impending 5 to 12 million dollar write down on its way, things are looking pretty gloomy on the mortgage front, which is causing buyers some headaches when trying to qualify, which in turn is causing homes to remain on the market longer and price reductions to become the rule of the day. By the way WAMU stock is now near $10 a share, from $40 a share last summer.
"Is it a buyers market yet?" one client recently asked me, tongue in check. "You have tremendous power right now", I replied, "if you can utilize it, there are some great deals to be had".
But like so many potential buyers choosing to sit on the sidelines and "wait it out", she was one of them
Wait out what? Fear, fear of recession, fear of job loss, fear, fear, fear. All the old fears that always crop up in a market like this one. Its our fear that holds us back, except for the brave buyers willing to buy and hold. Now there is a smart way to "wait it out", if you can swing it financially.
As sure as I’m writing this blog the market will even out and return to “normal”, and home prices / values aren’t going to stay down for any appreciable length of time, but I yell to the wind, no one else is listening. That’s OK, I’m patient by nature.
One of my sellers recently asked me, "How do I maximize my profits and still get my house sold?". Wrong question. The real question is what is the market price of my home in a declining market? Ah, there is the trick, valuing a home in this market.
Me? I hire a pro for my sellers, a real wake-up call for most of them, but having an independent appraisal in hand is invaluable in this market.
If a home is presented well, and I mean really well, great curb appeal, nicely staged and de-cluttered inside, no glaring maintenance issues ( like a new shingle roof being needed) and, and this is the BIG and, if the home is priced CORRECTLY, then selling it is no problem.
In fact buyers will come out of the woodwork and line up to buy fairly priced home that shines outside and in. For the right house at the right price, we still see multiple offers and homes being sold in three to four days or within a week or two. The rest, just sit and wait, like poor performers waiting to be picked.
Clearly there is a disconnect between the sellers and buyers. I have been counseling my sellers and those I have been called in to council for other agents. I tell them if they aren’t dead serious about selling, take it off or don’t put it on the market, you are wasting everyone’s time. Its tough love, but when the market changes, you have to change with it, or wither on the vine.
In the next installment
http://www.seattleshomesearch.com
You can find great local Seattle, Washington real estate information on Localism.com Rich Hamman is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.
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