Aston Lau

The Market is Overheated: Bob Truman

Most of what you hear out of real estate associations read along the lines of, “the market is always healthy and prices will keep going up.” So it’s refreshing to hear a realtor advise his clients that now might not be the best time to buy:

I’m now telling buyers to wait a couple months. We’re at the peak price for this year, there’s a very poor and limited selection, and there’s not much downside to waiting it out. Many buyers with pre-approvals have a guaranteed interest rate that will still be valid in August. Sure, there’s 3500 SFH listed for sale, but 90% of them are un-sellable at their present price. That’s why there’s such a panic when an attractive new listing shows up. A sales-to-new-listings ratio of 80% is the sign of an overheated market.

We’ll let things settle down for a while. History tells us the average and median prices will start to drop in July, and more listings will be available soon.

Read the post here:
http://www.bobtruman.com/blogs/bob_truman/archive/2009/06/28/it-s-all-down-from-here.aspx