I am here to tell you there is a full-time job in keeping up with the expert opinions on the market here in the Bay Area. But one that I found represents my personal experience with sellers and buyers was published on Data Quick News today. The article looks at 9 counties in the Bay Area and points out that once again sales have declined again for the 29th month in a row.
The quote that reflects my experience as of late: “Obviously there’s still a bit of a standoff between buyers and sellers. It looks like unsuccessful sellers would rather take the home off the market than bring the price down, which is remarkable after almost two-and-a-half years of sales declines.” This is true and challenging even to the reasonable seller. There are sellers out there who have the perception that this will be a short-lived lull in the market.
Let’s think about that one. Sub prime lending issues have and will reduce the number of buyers in the market for at least the next two years. All those buyers who are on the border of excellent credit and acceptable debt to income ratios will be working to change their situation and that doesn’t happen in a couple of months.
For those sellers who are pricing their homes at 2006 prices in neighborhoods that don’t carry the clout of the great school districts or “bedroom community” title must be prepared to get competitive. Those who think they can rent and come back to sell later must realize the complication of capital gains costs as well as the wear and tear on a non-owner occupied property.
My advice to sellers has been to; “Price right, show well, and prepare to help the buyer in anyway you can.” To the buyers, “Decrease your debt, shop around, and prepare to buy less house than you might have initially thought you would.”
Changing markets require fine-tuned awareness of the market and the right professionals to get you what you want. Let your thinking come current to the market and your expectations can be met.