I am pleased to introduce you to my first guest blogger, Shawn Kelsey.
As the broker of Kelsey Group, REALTORS responsible for managing contract issues and listing inventory, Shawn offers a wealth of information to all of the agents at my brokerage. Shawn has been talking about starting his own blog for months but always seems to find something else he needs to be working on, so I decided to help him launch his blogging career. I hope you’ll be hearing more from him in the coming months.
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We all know that there are many, many buyers just sitting on the sidelines right now.
They are not sure if it is the right time to buy.
They hear from the media that prices are falling … Buyers wonder “Will homes get cheaper?”
They hear from the media that the economy is bad … Buyers wonder “Will I lose my job ?”
Consumer Confidence or a Lack of it determines what people will do!!
If they feel good, they will be out spending money. If they are nervous, they sit tight.
The University of Michigan along with Reuters provides a popular and credible survey
called the Index of Consumer Sentiment.
This Index was created in 1952. The lowest it has ever been was 51.7 in May 1980. The
highest it ever was came in January 2000 during the Dot.Com Frenzy when it reached 112.
Note the trend of 2007 shown in the 1st graph.
In January of 2008 it was 78.4 and in February it has dropped down to 70.8.
The early March figures are 69.5 and will be finalized on 3/28.
Do you think this has any effect on home values?
Buyers need to be motivated and there is nothing causing that ..
(Unless the idea of “stealing” a house is on their mind)
The graph below shows the Average per year going back to 2000.
Note the level of 2004 at 95.2.
People were feeling good and many houses were selling at silly prices…those days are gone for now.
Nobody can ignore or deny that we are no longer in the 2004 market
and prices have declined for many people. It is simply a reality.
I compare the pricing decline to my worst stock purchase of Charter at over $19
per share. I finally sold it at just over $3 per share. It didn’t feel good but it was reality.
I asked if anybody wanted to give me more but had no takers …
With over 50% of listings not selling in the market, many sellers have “no takers”.
Pricing is always a very important factor and will certainly be so for 2008 !!
10936 Manchester Road St. Louis, MO, 63122 USA
admin@archcityhomes.com • 314-677-6538
Possibly Related Posts:
- First Time Buyer Tax Credit Claims by State
- Mortgage Interest Rates at Historically Low Levels
- Refinancing Your Mortgage at Today’s Low Rates Can Save You Money
- PMI Report – St. Louis Housing Market at Low Risk for Price Declines
