Most of my posts are geared towards the consumer, but the thoughts that are coming to my mind make this agent-oriented.
Well, let's start out with the fact that the market has ‘corrected' itself in many locales, but surely in the Orlando area. We are still in a very healthy market. Inventory is on a downward trend and will hopefully continue so. Rates are still very good in the low 6's. I've even noted in my personal business that what is usually a very slow week (the week between Christmas & New Year's) has turned into a quite busy one. Three buyers have contacted me and I'm in negotiations already, one being on a property that I've listed. My office tells me that they have noted that it's picking up as well.
Many realtors® may disagree that this is a healthy and rebounding market, but I have to beg to differ. I know several realtors® that have had a better year in 2006 than previously. And no, these are not neophytes. Most are seasoned veterans. A lot of people forgot (or especially the newbies who didn't know) how to work in what many of us consider a ‘normal' market. Too much was being taken for granted as business was just there for the picking.
It's a simple fact of back to basics. The business will come to you, but you have to farm & prospect. It's not just going to fall in your lap like in 2005. I know that I've written that clients need to remember that the summer of 2005 is over, but many Realtors® need a wake-up call. The only way a realtor can last in this business is to be adaptable. You need to be able to adapt to a changing market. You need to be able to adapt the changing times. Your prospecting and farming need to be adapted to today, not yesterday's style.
I'm seeing, as I sure a lot of you have, that there are still wholly overpriced listings being placed on the market. What I'm also seeing, & this really makes me laugh, is a listing with a price reduction. Yes, I know there are many out there that like to disguise this as a ‘price improvement.' Please, we all know what this is and so does the seller & buyer, so why the sugar-coating. It just looks like you're trying to disguise something & that doesn't work in the long run in real estate. People aren't stupid. They have so much more access to available information. Call it what it is. Believe it or not, you will look better in the consumer's eyes.
Sorry for the digression, I was mentioning about listings with price reductions. But what I've seen while looking further at many of these (more than I would expect to see), is that the property had an increase in price from the original pricing. Do they not know how to properly price properties? I think this is so basic or at least it should be to be a realtor.
I think that we will see a consistent and steady change in 2007. We will probably see appreciation in the neighborhood of 7-13% depending on your market. This is quite normal as most of you should be well aware.
I think that buyers are finally getting over being wary of the marketplace, even though the media did a great job in scaring the crap out of some people. Interest rates are expected to be historically low. PMI is now fully deductible on your 2007 income taxes for households making less than $100K. Existing home sales are expected to increase, while new home sales are expected to slide.
Miami-based Lennar Corp., one of the nation's largest homebuilders, said it expects a fourth-quarter loss, its first decline in at least a decade, as it reevaluates how much its inventory is worth, etc.
Right now builders are giving away the farm, but they have to get rid of inventory. Otherwise, they are going to be paying a boatload of interest on those completed homes for sale. Many are reevaluating their positions. We've all read about this.
This all bodes well for the existing home sale market & us in general as realtors®.
I'm looking forward to a great 2007 as you should as well. You need to have a positive attitude in this business, otherwise you are only being self-defeating.
I love what I do & I love Real Estate!
Until Next Time - Marc It Sold!®
Marc - I like your positive attitude, and I happen to agree with you regarding your predictions for this year. I think we'll be seeing buyers get back in the market, we're actually already beginning to see signs of that up here in NH in my market areas, and I hope that proves to be true all over. The media has lately actually begun to say positive things about the market and that it's a terrific time for buyers to be thinking about buying. FINALLY!!
I am doing some adjusting of my own, including a bit of attitude adjustment. 2006 was a dumpy year for me, and as David said above in his comment, "It has to be better than 2006". I believe it will be!!
Ann
Donuts.
2007 will bring lots and lots of donuts.
Just like every year in real estate!
Nice article, Marc. Good to hear things are improving there. I think, as you say, we are seeing that in other markets too, including here in Southern California. The next month or two will be most telling in terms of the direction the market is going. We need MORE positive news in the media as we have seen recently.
Jeff
Marc,
I agree I feel very positive about 2007. I've been busy since right before Christmas. Usually it's dead the week between Christmas and New year. Prices are still all over the place but I think that is great when I'm working with buyers. I like being able to negotiate down. In 2005 negotiating meant only up.