Getting to the core - understanding what’s happening at the surface, what’s really happening below it, and why – is essential in any business, but imperative for today’s Big Apple real estate market. Discussing the current climate, spotting trends, going below the surface, and analyzing what one learns allows us to help buyers and sellers make informed, smart assumptions about the future, and plan accordingly.
The Peel: What’s Happening at the Surface
Here’s what my typical buyers, sellers and colleagues are saying today, in the Summer of 2011:
Buyers are shopping.
“There’s nothing on the market to buy.”
“They attend our open houses and respond to our marketing. They are looking for mint condition homes. They demand beautiful finishes, excellent floor plan flow and convenience. They are less interested in square footage and building amenity packages”.
“Buyers are slow to make decisions; they feel no urgency to act quickly. They want a deal.”
Sellers seem concerned about selling.
“Make sure the listing price leaves room for negotiation.”
“Sellers are testing the waters (especially if they bought at the market’s height) and can’t possibly sell at a loss.”
“Well, if buyers like the property but don’t like the price, why don’t they simply make an offer?”
Experts convey mixed messages about the market.
Although appraisers and analysts provide the statistics--average prices, average days on market, listing discounts, etc. – their descriptions of the market are contradictory. Some call it:
- Steady
- consistent
- lackluster,
and others describe it as:
- schizophrenic
- uncertain
- listless.
Are these descriptions of the same market?
Have you heard these comments? Or perhaps you have muttered them yourself. More importantly, where do we go from here? How do we direct our clients effectively and professionally in such a climate?
