Yes, I think that's true. I've talked to a number of sellers, and even agents, who are convinced that their home is worth 10% higher than it's likely to get in today's market. In fact, even the experts are making that same observation. Just today, I was reading an article in MarketWatch by Rex Nutting, and he quoted the Chief Economist for Naroff Advisors as saying that "we still seem to be in the sellers'denial phase of the market and we haven't even hit the buyer's denial portion of the market, when people don't realize that prices are no longer dropping." What's your opinion?
Many REALTORS are true experts who study real estate, the economy, market trends, the home building industry, and local real estate sales statistics because that is what it takes to be "the real estate experts" in our area. These agents really do know more about real estate than most home sellers, buyers and many agents, and THAT is why we bring value to consumers' real estate transactions. It's why we earn the "big bucks!" (And it's the reason we're more valuable than mere real estate licensees who don't do these things.)
When consumers ask a REALTOR a question - even a casual one like "Are home sellers in denial?" -they'll know the REALTOR is more than one of those "here today, gone tomorrow agents" when the REALTOR quotes statistics and the experts, in addition to sharing anecdotes from their own experience.
Use the links below, if you'd like to read the entire article that is the source of each quote.
Joel Naroff, Chief Economist for Naroff Advisors: "We still seem to be in the sellers' denial phase of the market and we haven't even hit the buyers' denial portion, when people don't realize that prices are no longer dropping." U.S. inventory of homes for sale in May rises to 15-year high
Rex Nutting, Washington Bureau Chief of MarketWatch: "Starts of new homes in the United States dropped by 2.1% to a seasonally adjusted annual pace of 1.47 million in May, the softest pace of groundbreaking since January, the Commerce Department estimated Tuesday." U.S. housing starts fall in May to 1.47 million pace, down 2.1%
Patrick McPherron, economist for Moddy's Economy.com: "The bottom of the housing market appears nowhere in sight." Home builders' confidence falls to 16-year low
Lawrence Yun, Senior Economist for NAR: "I think psychological factors are currently the biggest drag on the housing market, in addition to a disruption from tighter credit for subprime borrowers." Existing-Home Sales Show Market is Under Performing.
Office of Federal Housing Enterprise Oversight: "U.S. home prices increased 0.5% in the first quarter, the slowest quarter-to-quarter price gain in 10 years." Home prices rise at slowest pace in 10 years
Mike Englund, Chief Economist for Action Economics: "Inventories of homes on the market rose by 5% to a record 4.43 million, representing an 8.9-month supply at the May sales pace." Dollar stalls after home sales data.
You can keep up with the experts through MarketWatch, as well as NAR press releases. You can even register to receive a MarketWatch Alert any time there is an article related to the Real Estate industry.
Contact Margaret in Maryland for real estate in the D.C.-Baltimore-Annapolis triangle. (Margaret Woda, RE/MAX Vision)
For more information:
http://www.margaretwoda.com/
mwoda@remax.net
Are home sellers in denial?
Copyright 2007. All rights reserved. Margaret Woda
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