Some days you just need to stir things up. Why not, since September I’ve listened to shitidiots cry wolf about crashes and other crazy musings as to why the market is going down. Unfortunately for most of them who can barely scratch any credibility out of there nose it hasn’t happened. Oh but they do try… Then there’s those hopless optimists who feel the market is full of helium thereby rising to new heights for ever and ever.
Fortunately I live in the real world. Certainly there is doom and gloom out in the world today; I can give you at least 15 reasons you shouldn’t step out your front door in the morning. A couple of weeks ago I could have given you -36 reasons.
I don’t very often respond to threads but today (being the "awards" time of year) I feel like giving out some oscars and razzie’s:
- Inventory plays a huge role in the market place and it does affect pricing. The strength of sales in January, (this is where I hand out the first razzie to the bonehead comment on the weekly market update) which was reported correctly by the Realtors Association of Edmonton as the second best January ever for sales – beating out January 2006 was nothing short of impressive. It makes you wonder where the market would be if the inventory was half of what it is now. Why was it so strong? September 2007 sales sucked. October rebounded. November was so so. December was actually impressive but January was blistering considering all the negative media happenings in the states and the sizeable inventory. My thoughts on it are that many people are looking at the fact that the prices haven’t tumbled like some have predicted and are looking at the opportunities as they relate to them. I just sold a home for a family and they moved closer to their kids’ school. So all things relative they are and have been in the market for the long term. So my razzie goes to the clown who said the REALTORS association was lying.
- My Oscar goes to the comment about the "ridiculous discounts" offered on another Edmonton blog. This is incredible acting – best supporting role in a farce for certain. Think it through – if 10 units sell for $150,000 whether or not the sales are reported on MLS their values establish the value in that complex. If a buyer wants to buy another unit in the complex and the last 10 sales were at prices $60,000 lower they’d have to be crazy to buy. Automatically if they had to resell they face a SERIOUS disadvantage in marketing their properties against the 10 other people who paid $60,000 less. In addition, what data will the appraisers base their values for buyers bank on? Oh yeah – those 10 sales previous sales. Seriously do you really think the developer will raise those prices? I doubt it but I’m a skeptic. What happens if the developer doesn’t sell them quickly enough? Will he reduce them 10 grand making the 10 people who paid 150,000 stuck? So hopefully common sense will prevail. Quality and good value are irreplaceable, not even by gimmicks. Shop wisely. If you are a first time buyer or not immersed in the market use the services of a REALTOR. They are in the market full time and can help you sift through the crap and give you information and advice that you just can’t pick up reading a blog, this one included.
