Early August Real Estate market
If we were to look back at the market, we would note that July 22 was the date on which the Hidden Meadows market “dropped.”
It was on that date that a home on Pinion Trail, which had previously been listed at $920,000 was re-listed at $726,000!
There have been many price reductions previous to that date – but massive reductions like that were unknown. That sort of reduction demonstrates someone who “must” sell as opposed to those who wish to sell.
We have a large number of vacant homes, and those are the next ones in which we will see large price reductions. That will be followed by a general reduction in prices.
I do not see a market more than 20% below today’s market. Our market is strong enough to withstand more reduction than that, and it is entirely possible that the market will not permit that much. It may be 15%. I doubt it will be only 10%.
The job market is strong. The general economy is strong. Gas prices are horrible, but not so high as to actually change driving habits. The stock market is responding to the world situation but not apparently to any “bad” domestic economic news. There is little bad domestic news.
There is a “Market clearing price” for every home, but only those truly interested in selling will sell. The market, however poor it is, will always get worse in October. The market, when it does recover, must work through an existing high inventory.
We have a long period of lower prices and high inventories – but I still do not see a bubble bursting. Any individual who gets caught in a “must sell” situation will certainly find their individual bubble bursting!
It was on that date that a home on Pinion Trail, which had previously been listed at $920,000 was re-listed at $726,000!
There have been many price reductions previous to that date – but massive reductions like that were unknown. That sort of reduction demonstrates someone who “must” sell as opposed to those who wish to sell.
We have a large number of vacant homes, and those are the next ones in which we will see large price reductions. That will be followed by a general reduction in prices.
I do not see a market more than 20% below today’s market. Our market is strong enough to withstand more reduction than that, and it is entirely possible that the market will not permit that much. It may be 15%. I doubt it will be only 10%.
The job market is strong. The general economy is strong. Gas prices are horrible, but not so high as to actually change driving habits. The stock market is responding to the world situation but not apparently to any “bad” domestic economic news. There is little bad domestic news.
There is a “Market clearing price” for every home, but only those truly interested in selling will sell. The market, however poor it is, will always get worse in October. The market, when it does recover, must work through an existing high inventory.
We have a long period of lower prices and high inventories – but I still do not see a bubble bursting. Any individual who gets caught in a “must sell” situation will certainly find their individual bubble bursting!
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