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SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
Smiling JOe said:
Another poster and I have been exchanging some data on sales, prices, etc.. The thing that stands out so much is that, on avg, the properties which are selling are still increasing in value over time. Few are selling, but as Highbidder says, some sellers really like their property.

Joe,
What's your take on a market where there are fewer homes selling but the median price is increasing.

The way that I see it is that a very large chunk of buyers are out of the market. That "buyers chunk" is made up of four types of people:

(1) People looking for affordable housing
(2) Middle-class folks priced out of the market
(3) Investulators
(4) Low- to middle-priced condo buyers

That means it takes only a few sales of the very upper-end, high-cost properties to sell (raising the median price) and the over-priced middle-to-lower end properties are sitting, and sitting, and sitting (inventories rising).

The folks who "don't intend" to sell their properties are putting them out there, and can afford to continue to pay carrying costs, but I bet they're more than a bit disappointed that they're not selling and would much rather have them out of their portfolio. My guess is that when they come to the reality that carry costs are eating away at what could be profits and the investment is no longer "making (on paper that is) double-digit returns," they'll want to move these babies along and price them to move. (Which would be good news for realtors and the folks who service them.)

What do you see happening over the next several months that will send mobs back into the street snapping up all the excess properties at/above current listing price as in days of yore? You strike me as a pragmatic kind of guy--I'm guessing you know that isn't going to happen.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
HighBidder said:
To all,

My initial motivation in posting to this board was to clarify a variety of misconceptions regarding the auction process, and to correct any direct mistatements posted by members of this board (of which there were a few). I believe that has been accomplished to the extent we all understand each other a little better now, however further debate at this point in time is not in anyone's best interest.

High,

Even though you are me (I've really got to see a doctor about that sometime :blink: ), I'd like to thank you for taking time and effort answering questions.

I'm in the process of writing my thesis about the affect the real estate boom has had on area economies--thank you for sharing your frontline experience of the auction process, it was very interesting and informative.
 

Kurt Lischka

Admin
Staff member
Oct 15, 2004
12,457,814
4,577
SoWal
mooncreek.com
SHELLY said:
High,

Even though you are me (I've really got to see a doctor about that sometime :blink: ), I'd like to thank you for taking time and effort answering questions.

I'm in the process of writing my thesis about the affect the real estate boom has had on area economies--thank you for sharing your frontline experience of the auction process, it was very interesting and informative.

Before you write your thesis, look up effect/affect. :lol:
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
SHELLY said:
What do you see happening over the next several months that will send mobs back into the street snapping up all the excess properties at/above current listing price as in days of yore? You strike me as a pragmatic kind of guy--I'm guessing you know that isn't going to happen.

I don't see "mobs" of people getting back in the market. As you mentioned, price alone has weeded out many would-be buyers otherwise. People buying into the market, will be people who can afford property, and people who are buying for the future (not 1 yr into the future, but 3+ years.) One other group will be people looking to hold a cup up to the bleeder's necks, and there will be some bleeders who shouldn't have bought to begin with. It is this last group who had better be quick and already have the numbers in front of them so they recognize bleeding when they see it.

Just my quick .02.;-)

Edit: While writing on another post, I remembered something that I stated long ago on this board. That is, with construction supplies increasing more than two times in the last year and a half, it would be very difficult for the price of new construction homes to decrease much, if at all, in this area. This should also help keep the prices of custom builds increasing. With more foreseen raises in supplies in the near future, I don't think you will see most newly built homes in this area selling for less than they did a year ago, unless the builder bought the lot so long ago that he can afford to sell for less.
 

Franny

Beach Fanatic
Mar 27, 2005
4,048
410
Pt. Washington
Cork On the Ocean said:
When and where is it Franny? :popcorn:
Sorry about that Cork. Have been busy doing other things, like work! :eek: I always check the Walton Sun for auction ads. I did not make it to the one this past Saturday. The auction(s) were located at the actual properties and really wanted to attend the one in Navarre. Large home on the sound and it was an absolute. May call the company and see if they will tell me how it did on Sat. That's about it.
 
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