Some are seeing the light. It's pretty tough not to when it's shining blindingly right in your face...
The Summer of 2005 is over and isn't coming back. This is a painful lesson for sellers trying to base their asking price on comparable sales from August."Our members are telling us that owners are beginning to back off prices 10 to 15 percent because they're not getting people pressing contracts into their hands," says Belton Jennings of the Orlando Regional Realtor Association.
Only fools predict the housing market. So here I am, once again playing the fool. Your house won't be worth any more by the end of the year.
Inventory has quadrupled in a year. That generally is an omen of price drops to come. It allows potential buyers to say: "Well, if you won't give me that price, the guy down the street says he will."This is one reason why values dropped 4 percent in December.
But if you paid $350,000 for a house three months ago and the builder now is selling the same house for $350,000 but offering $40,000 in incentives, your house is worth less.Try selling a used condo when the developer offers to pay association fees for two years on new units.When prices settle down, and finally wind up where they really belong, then the appreciation cycle will begin again -- but at a sane pace.
February 20, 2006
Posted by blogger at 2/20/2006