This month I try to answer a big question: If the stock market is at all-time highs, why is the real estate market flat-to-down?
This is perplexing for lots of people.
Sellers are frustrated because they want to achieve the highest price possible, and historically, the real estate market is up, in sync with the stock market.
Don’t be so sure.
As someone put it, “Sellers are always the last ones to know.”
I’m not sure that’s definitively the case, but certainly sellers are the last to admit what’s going on.
I covered the tax plan and my concerns, last month.
As time passes, we will see if the fear is overblown.
For those buyers who think the market is going to dip 15-20% from the top- They need to recall that prices dropped, at their worst, 25% from peak to trough during the worst recession in 80+ years in 2008-2009.
Prices will not drop as far as they did then.
Sellers don’t want to leave money on the table. Would you?
And yet. we remain in a market that is structurally Sound.
As long as prices are right, properties sell.
We’re still seeing bidding wars, multiple bids on well-priced units, and unfortunately only a trickle of inventory yet coming to market.
As we approach Spring, we will see more opportunities- and hopefully at more realistic pricing.