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A Qualified Yeah, Maybe

Once in a while, I share with you the real estate e-letter of a very experienced agent. He’s big on convincing customers, though I think that he’s slightly deficient when it comes to clearly conveying his ideas on paper.

  • 2012 was a good year for Real Estate for Suffolk County
  • All activity shows towards a gradual Stable recovering real estate market.
  • However, the last part of 2012 brought about a “New Buyer’s Compromise Attitude”
  • Buyers had during the early part of 2012 many homes on the market to choose from, and a lot of seller’s motivation to sell.  
  • As we went into the last part of 2012, we saw things changing, as fewer homes coming into the market and housing inventory fell sharply.  And, owners are choosing to stay put and reluctant to sell.  We experienced less seller motivation to make a deal, which resulted in a  3.5 % increase in home prices for each of the last 3 months, of 2012 when compared to the same 3 months of year 2011.
  • All indicators are good signs that the market is recovering fast with 2013 poised to be a banner year.

I think that he’s optimistic.  I think he believes less inventory and higher home prices is good. At least it is for agents who charge a percentage of each sale, as they make more even if they have fewer sales.

Higher price/less volume doesn’t harm mortgage lenders who’ll lend more albeit on fewer transactions. However, I’m not so sure it’s good news for the lenders’ counsel who charge per closing, appraisers who charge per home, title closers who charge per transaction, or lawyers like me who charge the same no matter the cost of the house.  One party to a $370,000 sales price still pays me the same fee as one party to a $350,000 deal.




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February 2019


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