If you’re reading this, I want to thank you.
You are certainly among the special folks who prefer reading their news to watching on video.
I’ve had a lot of fun recording the videos of the last couple months, and will continue creating content for video and the blog.
But for sure, more people seems to like watching me to reading me.
Sadly, I really do enjoy writing these blog posts for you.
But if you prefer video, who am I to argue?
I’ll start making more specific videos about the odd little things that I think are interesting- and I hope that you agree.
For now, as I created a broader market video, I have a few things I wanted to think about that didn’t make it in:
The Gap Between Asking Prices and Income
The longer thought is this.
If the stock market is at all-time highs, why isn’t the housing market here super duper red hot?
The answer, while it could be complicated, in many cases is pretty straightforward- income hasn’t kept up with housing prices.
And in a city where this is a perennial issue, it is even more pronounced right now.
So, if properties are simply priced out of reach, there will be pushback.
We’ve been seeing this for a year or more.
But the reaction of the marketplace to overpriced vs. appropriately priced property is so stark.
If it’s overpriced, it often won’t even see an offer.
Rates will likely go up at some point.
I’ve given up trying to guess when that will happen.
They remain stubbornly close to where they’ve been for YEARS.
But what if they actually go up another 1%?
Will sellers respond to the reduced purchasing power of buyers?
As I mentioned in the video, many sellers are getting “with the program” in that they’re adjusting their prices to the market, whether they are new to market, or if they’ve suffered through a few months at a higher price.
We are seeing an increased velocity in the market as a result.
Buyers finally feel that pricing is coming to them.
And yes, there are still some stubborn buyers who will always want to “beat the market,” and they’ll end up missing a moment when they were in a buyers’ market.
Sellers are pretty flexible, but the market is still structurally sound.
Next month I’ll have a better sense of the direction of the market.
So stay tuned to the videos and blog posts!
THANK YOU FOR READING.