Thinning the inventory herd...

By
Real Estate Agent with Century 21 Results Realty

While cruising around today, I ran across a great post by Linsey Planeta.  You should go give it a read.  Primarily it is about real estate agents finding a little piece of positive info and blowing it out of proportion...  And to that extent, she has hit the nail on the head. 

But then in the comment stream I noticed something about how the increase in sales was largely due to getting the foreclosures moving through the system... and that they didn't count.  Nothing could be farther from the truth.  Prices are down because foreclosures are polluting the numbers... true.  Sales are up because the lower priced foreclosure are clearing... true. 

But that is part of the cycle... it HAS to happen.

Right now, foreclosures and distressed properties are the old and sick of the housing inventory herd.  In order to return to a healthy market, the old and sick inventory have to get eated by the predators.  They need to be culled.  In my area, inventory levels are still very high.  They aren't as high as they were a few months ago, but they are higher than they would be in a market that is even slightly out of whack. Absorption rates and sales statistics won't look healthy until the herd is healthy. 

We can try to be the guy in the video...  but we aren't always going to win.  We have to accept the circle of life...

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Ambassador
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Lane Bailey
Realtor & Car Guy
Century 21 Results Realty

Huiting - Glad I was able to point you to it. 

Linsey - There are a lot of conversations we need to have... with each other AND with consumers.  Good job. 

Terry - I like seeing the new inventory down here in Gwinnett... especially with sales moving up a little. 

Dan - I hope there is a spring rush. 

HRG - I think that we will see a slight increase in foreclosures, but I would be that it won't be anything like what is predicted.  And they certainly matter.  Anyone trying to NOT include them in market reports is missing the boat.

November 25, 2008 03:15 PM
Rainmaker
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Ken Cook
Writer For Hire
Digital Content Creator

Uh, when the thinning gets so close my office is down to my wife, Kim the magnificent and three outside LO's I call a halt to it. Especially when we're still geared up for 22 employees! Hey, if I don't talk to you before then -and I probably will- please have a happy and safe Thanksgiving.

November 25, 2008 10:56 PM
Ambassador
883,219
Lane Bailey
Realtor & Car Guy
Century 21 Results Realty

Ken - I'll call you so that you can be sure to talk to me before T-day. 

November 26, 2008 12:42 PM
Rainmaker
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Robin Rogers
ABR, CRS - Real Estate Broker & Investment Adviser
Robin Rogers, Silverbridge Realty, San Antonio, Texas

Excellent point, Lane! Much as I hate to deal with HUD homes and REOs, we will need to get through them.

Cheers,

Robin

November 28, 2008 09:48 AM
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Lane Bailey
Realtor & Car Guy
Century 21 Results Realty

Robin - I don't particularly like dealing with them, but they are the reality of today. 

November 30, 2008 09:40 AM
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