The key to this for the economy, is a lack of transactions, with sellers slow to hit current windfall prices, trailing all the way down.
Sunday, November 06, 2005
Sellers Not 'Desperate Enough' In Boston
thehousingbubble2.blogspot.com
The Boston Globe reports on homeowner psychology in that city. "As inventory grows, buyers are being wooed by more options, and sellers are seeking ways to make their homes stand out. Gary Rogers, a realtor in Waltham, said many sellers are reluctant to make the necessary investments and price adjustments. He believes many sellers are 'testing the market,' with plans to try again in the spring if nothing works out."
"It's a practice Rogers cautions against because it is difficult to predict where the market will go. Asked if sellers have become more desperate as the market has slowed, he replied, 'they're not desperate enough.'"
"Some brokers are hosting 'extreme open houses,' to lure prospective buyers with entertainment. Events in the Boston area have included readings by authors, cooking demonstrations, wine tastings, and art shows, which take place as people tour the property."
"Barry Fiske and his business partner have seen first-hand how asking prices can change. They bought a tear-down bungalow in Hingham two years ago and replaced it with a custom home with three finished bedrooms and ocean views. Since the new house went on sale a month ago..offers have been scant. The original asking price of $889,000 has dropped to $859,000, and still further to $829,000."
"'Our timing, I think, has been poor,' said Fiske. His main recourse, one he thinks more sellers should learn to embrace, has been an adjustment to the bottom line. 'Sellers have got to be willing to reduce their price,' he said." |
