Buyer confidence is much stronger than the last 3 years. Everyone knows that “confidence” is that hard-to-measure critical component of Real Estate. In 2008, for every 10 buyers that I spoke to, 8 would tell me that they would not even consider buying until the market stopped declining. I only hear that maybe 2 out of 10 times now.
Buyers are paying more for quality homes. I have often shared that the problem with the “Zillows” of the world is that they cannot quantify the very things that buyers will pay more for. Exceptional locations, views, privacy, upgrades, cleanliness, rare floor plans – all of these are features that buyers may pay a premium for. In the last 3 years it has been very difficult to get premiums; either because the buyer was scared to pay it or the appraiser wouldn’t bring the value in.
We will likely not have any obvious appreciation for a few years. The overwhelming reason for this lack of appreciation is that agents are pricing short sales below market value without any knowledge or care for what bank may accept. Make no mistake, most agents’ price short sales aggressively, with 30% of the homes in our county having no equity. It is everyone’s responsibility to price property with integrity.
The second foreclosure wave has not hit, and most “in the know” agree that it won’t. Clearly, there are plenty of foreclosures that will come to market in the next 3-4 years, just not the gluttony of homes that we all heard about. Just ask the 100′s of asset managers that have been laid off in the last 2 years. This most recent issue with banks FREEZING FORECLOSURES is highly suspect in my opinion.
Vistit My website at www.tandconline.com
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