Housing Market: More Mixed Messages

" 'What? The market's great? I thought you said 'Housing was flat?' "

Okay, so, according to some media outlets, the economy is growing like a horny senior on prom night. Construction is up, development is up, and people--well, baby boomers, at least--are still buying luxury cars, even in the face of $3 dollars a gallon for gas.

And yet, others claim that confidence in the market is dropping, and overpriced, condo-glutted areas such as D.C. and Boston are turning into seriously slow markets where the buyers are gaining real advantage.

The key to this is knowing your individual market. Don't assume that if a bubble is bursting in City X, that it will also burst in City Y. Research the sales trends, property listings, and talk to your contacts and friends about what's going on. Each region of the country is having its own evolution in terms of the overall market, so what's "frothy" in one area could be "bubbilicious" in others. (I can't believe we can use those terms with straight faces these days. :) )

Someone at Ben Jones' Housing Bubble Blog made the same comment I was considering: If you're trying to sell your house for $399,000, and getting no takers, shaving a measly $5,000 off the price probably isn't going to cut it. You have to be realistic about what you can expect from any sale in even the best, most price-stable markets, and folks, this ain't it.

Speaking of mixed messages, the National Association of Realtors' site now has their own blog, and true to form, all the best housing bubble bloggers out there are kicking up dust. I might have to weigh in and start some ruckus myself. In the meanwhile, check out David Lereah Watch for stuff you may not be hearing from the REALTOR side of the fence.

Posted at May 1, 2006 03:04 PM

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" 'What? The market's great? I thought you said 'Housing was flat?' " Okay, so, according to some media outlets, the economy is growing like a horny senior on prom night. Construction is up, development is up, and people--well, baby boomers, at least--are still buying luxury cars, even in the face of $3 dollars a gallon for gas. And yet, others claim that confidence in the market is dropping, and overpriced, condo-glutted areas such as D.C. and Boston are turning into seriously slow markets where the buyers are gaining real advantage. The key to this is knowing your individual market. Don't assume that if a bubble is bursting in City X, that it will also burst in City Y. Research the sales trends, property listings, and talk to your contacts and friends about what's going on. Each region of the country is having its own evolution in terms of the overall market, so what's "frothy" in one area could be "bubbilicious" in others. (I can't believe we can use those terms with straight faces these days. :) ) Someone at Ben Jones' Housing Bubble Blog made the same comment I was considering: If you're trying to sell your house for $399,000, and getting no takers, shaving a measly $5,000 off the price probably isn't going to cut it. You have to be realistic about what you can expect from any sale in even the best, most price-stable markets, and folks, this ain't it. Speaking of mixed messages, the National Association of Realtors' site now has their own blog, and true to form, all the best housing bubble bloggers out there are kicking up dust. I might have to weigh in and start some ruckus myself. In the meanwhile, check out David Lereah Watch for stuff you may not be hearing from the REALTOR side of the fence.