Wonder why the real estate market is in some crazy pseudo-gridlock? I’ve read many explanations of the current post-bubble-pre-collapsing housing market, but none of them hit it on the mark like the one I’m about to share with you.
Actually, according to Diane Swonk, chief economist for Chicago-based Mesirow Financial, “we are currently experiencing the worst of the market freeze, which is being exacerbated by the gap between the buyer’s desire for bargains and the seller’s fantasy of what they once thought their homes would be worth.”
It’s perfect in its simplicity. Yes, every buyer I know keeps waiting for prices to just fall already. Yes, every seller I know just refuses to sell their home because it “should” go for more from what they’ve seen in the market recently. This conflict in philosophies between buyers and sellers has put us in a state, not unlike Los Angeles traffic, of gridlock.
Take a look at the Washington Post article I found the quote in. It presents a clear picture of the state of today’s market.
I guess the question now is, who is going to win out in 2007?
Related posts:
- What Falling Prices? Asks San Fran Real Estate Pros, Says Report
- Real Estate Bubble Popping, Housing Starts and Building Permits Tumble
- Real Estate Vocabulary: Adverse Posession
- Sunday Real Estate Speedlinking
- Could It Be:Real Estate Bargains?
Article Author: Joshua DorkinJoshua has written 570 articles for us.
Visit Joshua's Website: http://www.biggerpockets.com/
Joshua Dorkin (@jrdorkin) is the founder and CEO of BiggerPockets.Mr. Dorkin's vision for BiggerPockets has helped to propel it into becoming one of the top real estate destinations online. His vision for the site and its future has brought national press attention to both Mr. Dorkin and to BiggerPockets.
Joshua Dorkin
{ 3 comments… read them below or add one }
Question, question, I recieved your email via Google Alert “Islands for Sale”,,, How did you get this listed with them,, I need to advertise some information about and Island for sale?????????
You should consider listing with http://www.privateislandsonline.com/. You can also post your island on our investment property directory
Sellers are scared and hoping this is all a bad dream, that the (possible) downturn is all in thier imagination… buyers are waiting with thier lower offers… IMHO
Brian Nygard
Team IllinoisRealEstate.com