1Q 2009 sales were down by -20% compared to 1Q 2008, which was down by -29% compared to 1Q 2007 Market slowing has been relentless and significant during the last three years, hasn't it? Segmenting sales by price range shows that sales decreased in all price ranges except the lowest range (<$200K), which increased slightly. Is that something to celebrate? I think so! Stability is the first step toward long term success. Stability must happen in the lower price ranges in order to halt the gravitational pull downward that starts with houses that just a few years ago would have sold for $50,000 - $100,000 yet are now selling for $5000 - $25,000. That's deep... We all know that sales of foreclosed properties were strongest in the lower price ranges. Check this chart out - I'll show you in tomorrow's post that foreclosures represent 37% of the entire market, and more than 50% of all sales under $200,000. You think that we have a gravitational pull downward or what? Those of … [Read more...]

My Keller Williams Realty team Leader, Steve Kout, sent me the "5 Stages of Seller Grief" last week and here they are, with a slight twist on the psychiatric graph above... Denial –My house is different. Anger –My agent does not know what they are talking about. Bargaining –Let’s try it at my price and see what happens. Depression –My price did not work and my agent should have talked me out of it. Acceptance –My value has gone down, and I need to just do whatever it takes. There's always a slight twist with real estate matters, so in the case of the most common form of Seller Grief, after the anger at an agent subsides, they are driven to bargain and chase the market, fueled by hope as the primary sales strategy...all of this sturm und drang prior to eventual depression. I just read an old Tibetan Proverb - "YOU CAN NOT DISCOVER NEW OCEANS, UNLESS YOU ARE WILLING TO LOSE SITE OF THE SHORE..." I found it as this web site - goodgrief.org, because I … [Read more...]