Javier Varon

Markets always change.  There are cycles in every economy and currently we’re experiencing the end of one cycle and the beginning of another.  However, there are a few factors that haven’t appeared at the same time in recent history.   

The five factors are:

1. Currently there is the largest standing inventory of new homes in about 30 years.  Builders continue building them because of contractual commitments.
2. From 2005-2006 approximately 40% of all Real Estate purchases were “investor” sales.  With the market softening, a major portion of those homes are being put on the market further adding to the inventory.
3. Between 2003-2006 an enormous amount of people bought homes and refinanced their existing homes with adjustable, interest only, sub-prime, negative amortization and other “creative” financing loans.  Many of those interest rates are changing and the owners can no longer afford the homes.  Again… more inventory.
4. It is estimated that approximately 1.4 to 1.7 million homes will be repossessed by lenders.  Those homes will be sold by the banks and the end result is even more inventory.
5. Then there are the regular sales that happen every day.  People upgrade, downsize, relocate etc… 

To sell in this market – and people do sell, in fact the number of sales are still strong – you have to be motivated and realistic.

We’ve had such growth, that even in today’s market you will get a good price on your home.  However, the days of getting multiple, above asking, offers are gone… for now. 

Here is a proven formula for selling in this market:

Aggressive Agent + Best Showing Property + Best Price + Most Accessible Property = Sale