- This topic has 32 replies, 15 voices, and was last updated 17 years, 8 months ago by
NeetaT.
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January 9, 2007 at 6:48 AM #8188January 9, 2007 at 8:09 AM #43004
(former)FormerSanDiegan
ParticipantNot really … at least in the SD market.
Nice try REIC, but…when a seller can cut his/her asking price by 20-40% and still walk away with an enormous profit, they are still in the driver’s seat.
When a seller has to cut their prices to meet the demands of the buyer, when the seller has to offer incentives, when the buyer can place all contingencies and get an offer accepted it is NOT a sellers’ market.
What market are you talking about ?
What planet are you on ?
January 9, 2007 at 8:54 AM #43011Cow_tipping
ParticipantIts a waiters market.
The more you wait the more you save.
Its a buyers market at the bottom, and on the lower 1/2 of the rising price. The upper 1/2 of that curve and top are sellers markets, and the way down is a waiters market.
Cool.
Cow_tipping.January 9, 2007 at 9:06 AM #43015Participantcow_tipping –
I agree from a pragmatic standpoint. But the market belongs in the hands of those with strength. Whether it’s buyers or sellers. Right now it’s the buyer’s… and if the buyers choose to wait that is how they are exercising their upper hand.
January 9, 2007 at 9:48 AM #43024DaisyDuke
ParticipantIf my sale goes through (scheduled to close 1/18) I will take a $30 reduction on my condo in North Orange County but I believe I am walking away with a good amount to put down on a new home if I stand by the wayside and wait. I believe this will be a long wait too for the prices to slide. Too many buyers simply refuse to lower their prices to what the market will bear at this moment. I have several friends to have had their home on the market and they are (in my opinion), chasing the dollars down.
January 9, 2007 at 10:00 AM #43027PerryChase
ParticipantTechnically, we are in a buyers’ market. But I hate that term because it implies “run out and buy.” Let’s find another term to use. Any ideas?
January 9, 2007 at 10:27 AM #43033ParticipantI mean’t “sellers” refuse to lower, not buyers. Sorry.
January 9, 2007 at 10:28 AM #43034ParticipantSeller’s Fire Sale Market ?? Let’s hurry things up.
January 9, 2007 at 10:33 AM #43036kev374
Participantit’s a buyers market in terms of control but it doesn’t really mean anything since the values are so out of wack so the buyer really has no choice to do anything but wait, if you can’t afford anything by a long shot what difference does it make if you have the power to negotiate 5% or 10% off the asking price, it’s all pointless…so from the latter angle I guess it’s not so much a buyers market 🙂
January 9, 2007 at 10:42 AM #43038IONEGARM
ParticipantA buyers market would be low prices and high inventory. A sellers market is high prices and high inventory. This is a sellers market with most sellers not being able to sell.
January 9, 2007 at 10:46 AM #43039bigmoneysalsa
ParticipantThe phrase “buyers market” actually does have a well-established definition in econ-speak. It basically means that buyers are in control of the transactions that happen. And by that definition, we are definitely in one right now. So technically the REIC is right about that. Of course, a buyers market does not mean it is a good time to buy, by omitting that important detail they are trying to lead people astray.
January 9, 2007 at 10:52 AM #43040ParticipantFirst, I’d like to say that I have never participated in on-line posting before. I am an on-line virgin. So if I am being out of line, please let me know. I guess this is my first time because it is an interesting subject to me and there are some really smart people on this site. Sorry to dilute the intelligence. I only hope to share information in my area. That said . . .
Being a recent “seller”, I’d agree with the last post. I priced my home at a “reasonable” price (okay stop spitting out your Diet Coke) for the market at this moment in time. While I took a reduction of $3,000 from the asking price and covered the closing costs (hidden reduction), I still had a couple offers, a few lookers, but a gazillion real estate agents coming through my home. It’s becoming a buyers market as more homes reduce their prices, but it’s not there yet. Sellers are just in a daze and don’t understand that they are not going to get the same price that their home would have brought last year.
January 9, 2007 at 11:02 AM #43043lendingbubblecontinues
ParticipantNope..speaking of San Diego…and pretty much anywhere in the United States.
When the seller can still make a mint on the sale of their house (obviously I’m not talking of anyone who purchased sinced late 2004) to a new “bag-holder”. The seller wins. The buyer loses. Plain and simple.
I know of people who moved away last summer, before selling their house, and are planning to move back here this summer because they “can’t” sell their house. Bullshit! If they drop the price to $650K from $750K, it’d likely sell, even in this market. And they’d pocket a cool $250K in tax-free gains. The seller has control, but will not exercise it due to greed. Buyers are really not forcing anyone’s hand just yet.
“When a seller has to cut their prices to meet the demands of the buyer”….if they are still making a KILLING–yes, it is still a seller’s market.
January 9, 2007 at 11:20 AM #43044SD Realtor
ParticipantLendingbubble has a good point. As a potential buyer I am still very frustrated by the fact that pricing has not come anywhere close to what I would consider reasonable levels. It is not just the homeowners selling that frustrates me either, the REO, short sales and foreclosures are still priced at higher points as well. Yes the market times have grown as has inventory. Yet there STILL are buyers out there and they STILL are paying prices that I will not pay. The market is still churning and I think it will continue to do so.
I guess I wouldn’t call it a Sellers market by the standards of the past few years. However it comes nowhere near the true definition of a buyers market.
SD Realtor
January 9, 2007 at 11:27 AM #43045an
Participantsellers of anything will always make a killing on a sell unless they’re desperate, so what’s your point lendingbubbleco? Even at the bottom of the last crash in 1996, if they buyer bought in 1980, they would be making a killing. So I guess in your terms, it’s always a seller’s market.
If sellers do have the control, then they wouldn’t have to lower the price. Seller will ALWAYS want the highest price and buyers will ALWAYS want lowest price. If price have to go lower, then buyers have the control, period.
SDR, there are buyers at every price point for a particular house. You and I are not as serious of a buyer as some other buyers out there. For those serious buyers, they will negotiate with the sellers and buy what ever price they come up with. If after negotiation, the buyers get more of what they want than the seller, that’s the buyer’s market.
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