Life's Hard, Even at the Top
By Wendy Cole, Senior Editor
Be careful what you wish for.
I took a trip to Charlotte, N.C., last week to get a feel for what it's like to sell real estate in a market that’s been well publicized as an exception to the national housing slowdown. I chose the Queen City because its market has stayed strong and steady, even notching price gains for much of this year.
My colleague, managing editor John Frank recently took a similar trip to Sacramento, Calif., to talk to practitioners in a market where sales and prices have fallen off a cliff. His goal, and mine, was to find out what readers in these markets think of our magazine and to get ideas for how we can serve them better. I thought I'd pose similar questions to a focus group that, at least judging by the headlines, is in an extremely enviable position.
In the first quarter of the year, Charlotte home prices jumped 4 percent over the year before. (New York City was the only other metro area with a gain — 2 percent — during that same period.)
So I thought it would be refreshing and encouraging to hear for myself about the upbeat news out of Charlotte, a major financial hub commited to smart gowth. I'm sad to report that I couldn't have been more wrong.
Real estate practitioners there say they feel enormous stress about meeting the expectations of sellers who have also read those same cheery headlines. It seems all the positive buzz is making it harder for practitioners there who say the market really isn't as rosy as it seems.
The fact is the numbers in the past few months have turned down in Charlotte, as many transactions have fallen through because out-of-town sellers hoping to relocate there can't find their own buyers. Charlotte sellers have been some of the most stubborn about lowering prices, as inventory there has started to mushroom.
The message that the local real estate sales community would like to get out: Stop talking us up so much; it's making it harder for us to do our jobs.
How have media reports affected business in your markets? Are stories about price reductions starting to get buyers off the fence? The falling prices do seem to offer new marketing opportunities, no?
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Comments
In Alaska, people believe themselves and their economy to be "different" than the lower 48. They are having serious difficulty recognizing the reality of market declines particularly in higher values. Agents have been despairing getting them to understand and accept reality. Good properties languish months without sale. Small price reductions do nothing. Few showings to buyers for homes over $300,000 have been the rule for at least a year. Buyers seek good deals and negotiate hard; lots of inventory. Agents cannot get sellers to recognize what the market is telling them. Price too high, few showings, no sales over long time on market. Fewer qualified buyers. Qualified buyers holding back. Lots of inventory. If you want to sell, you are going to have to get real. And quickly before the summer ends and/or interest rates rise.
Posted by: C. Patterson | June 15, 2008 01:31 PM