Working with buyers right now is more difficult than it should be. They hear from the media that they should start offers at AT LEAST 10% of list price and not pay more than 95% of list price. This can make negotiations very difficult with sellers who get offended and don't even want to then work with those buyers. And more difficult if the buyer really LOVES the house, but loses it despite our efforts because they listened to the wrong expert (not their Realtor). The truth for buyers is that if you love the house, make a decent offer. Because our job, as Realtors, is to help you reach your goal. And if you want the house, we want you in that house. Low balling an offer can lose you the house, despite all of our efforts. And a buyers market simply means it's a supply/demand issue - more inventory (homes) than buyers. But buyers listening to the so-called experts believe one thing and they trying to listen to us, believe something different - which does sometimes paralyze them into doing nothing.
But let's look at the statistics in the Cleveland/Medina area and compare them with the last few years just to see. This information come from the statistics compiled by the Northest Ohio Regional Multiple Listing Service (NORMLS, as we in the biz call it).
Changes from 06-07
New Listings Up 5.55
Sold Listings Down 7.1%
Average Sales Price Down 3.5%
Market Time Up 9.8%
In summary, comparing 07 to 06 we had more listings with fewer selling at sales prices lower than 06 and on the market longer, but all are slight, not dramatic.
Changes from 05-06
New Listings Up 15.2
Sold Listings Up .8%
Average Sales Price Down 2.1%
Market Time Up 6.5%
In summary comparing 06 to 05 we had more listings with MORE selling at sales prices slightly lower than 05 and on the market again, longer, but slight.
Changes from 04-05
New Listings Up 15.6%
Sold Listings Up 4.7%
Average Sales Price Up 4.4%
Market Time Up 1.3%
In summary comparing 04 to 05 we had more listings with MORE selling at prices slightly higher than in 04 and on the market again, longer, but slight.
In summary comparing 04 to 07 the number of houses on the market has continuously risen, but this year has seen the fewest new listings in the past 3 years. The number of sold homes is only slightly down and the average selling price is slightly down and the market time is continuing to rise. Interestingly for sellers, and yes buyers, the last time the average sales price went up was in 05 which means homes are selling today for around the same, if not slightly lower than they did in 05. If someone bought their home in 04 or 05 and expects to make the appreciation of 2 years on that home, the statistics show that it is not likely they will. I guess in all of this that is the bad news. The rest is marignal news, not horrible as the media paints it.
So just how bad is it really? Houses are selling. Buyers are buying. I think if both buyers and sellers do a little reality check the market will keep on keeping on. But if everyone starts listening to the so-called experts and then let that information paralyze them, we might be looking at a different set of statistics next year. Bottom line buyers if you like a home, make a decent offer. Sellers realize that your home may not sell for what you want it to today, but may sell for the price you would have gotten 2 ago if you sold. But if you then have a house to buy, you are making it up on that end as well....