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Professional Real Estate Advice August 26, 2004

John Puhek
Owner Broker/RE/MAX Professionals

 

Timing Is Everything

Timing Is Everything

 

Sellers don't want to hear it right now, but they are not getting the same price for their house that was obtainable in April and May.  The market has changed.  The sense of urgency among buyers has vanished.  Since June it has transformed to more of a buyer's market from a serious seller's market in April and May. 

 

Why?  Several factors combined to produce the condition we are seeing now.  First, the month of June usually slows down even in a raging market because families get away from real estate.  There are kids getting out of school, vacations, weddings and graduation.  New escrows typically decline in June compared to April and May.  Second, in June there was a slight increase in interest rates with rumors of even higher interest rates scaring away buyers.  Third, the feeding frenzy in April and May, which resulted in amazingly high prices and a lot of people to wanting to cash in, causing a flood of inventory. 

 

Don't panic.  The higher interest rates rumored after the June increase never happened.  We continue at historic low rates.  The economy is stable.  The real estate market needed a correction.  I predict that it will continue flat through the next of this year, and pick up again next spring.