The biggest problem I have with the
Greenwichreal estate market right now is the lack of inventory. There is not enough good inventory on the market to satisfy demand. Technically we have more houses listed on the market today than there were a year ago, but this does not tell the full story. A significant portion of these homes are over-priced, as the sellers are not willing to let the houses go for current valuations. The houses on the market that are well priced are going fairly fast.
In an age when buyers go online to start their search well in advance of when they intend on buying, it is more essential than ever to price your home appropriately. Today's buyer is savvier than ever and has been paying attention.
I can understand when a seller does not want to sell at a lower price and why they would also be willing to let their house sit for the right buyer. I can't say that buyers don't come along once in a while and purchase homes at higher prices than the normal market would bear. In my opinion, there is nothing wrong with this. The price that a house is listed for is (and should be) determined by the seller, not by the realtor.
The reason that I bring this up is not to get sellers to lower their prices (that is their prerogative), but to point out that the well-priced inventory on the market is actually very low. Normally this would signal a potential up-tick in valuations, but I'm not sure that is going to happen any time soon. We really need some positive movements in the financial sector to help lift consumer confidence before that happens.
In my opinion, we are in a period of stagnation that is almost entirely controlled by the buy-side. Buyers who don't find the inventory they want at the price they want are simply waiting. With consumer confidence low, there is no motivation to bid up, as there might be in typical low-inventory times. In addition, with no increase in interest rates in sight, buyers are feeling "confident" that they can take their time and will still be able to finance at rates south of 4%. Contrary to many of my counterparts, I am hoping for an up-tick in rates as I feel that might spur buyers off the fence.
In the meantime, the houses that are on the market and well priced are actually moving fairly fast. I've seen several trades in the past two months that have gone to contract within weeks of hitting the market. The buyers who are willing to jump now are finding some great opportunities. Eventually they will be rewarded when consumer confidence rises and we start to see more of a stabilized supply-and-demand relationship.
I wish everyone a wonderful Thanksgiving. Eat up, stay warm, and be safe.
Sincerely,
Scott
Scott Elwell
Senior Vice President @ William Raveis Founder/Real Estate Agent (MBA) - GreenwichCT.com 45 Field Point Road, Greenwich, CT 06830 | Licensed in CT & NY Mobile: 203.940.0444 | Fax: 203.930.2808 | Email: scott@elwell.com My 2011 Activity - Bio
