BrokerageIndustry News

Superheated markets burn buyers, agents alike

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

(Second of two parts. See part 1.) Last week I looked at how builders are aggressively competing to increase market share during down markets, usually at the expense of the resale market. This week focuses on the other end of the spectrum–the superheated sellers' market–, which burns both agents and buyers alike. In a sellers' market like the one they are experiencing in many parts of California, inventory comes on the market and goes off almost immediately. Since it's next to impossible to keep any properly priced inventory on the market for more than a few days, agents struggle with constantly trying to replenish their supply of listings. Low interest rates and high demand have resulted in skyrocketing prices. Exacerbating the situation, low inventory has caused many owners to stay put rather than fighting to locate a replacement property. All of this adds up to a nightmare for agents because without inventory, there are no sales. During my 20 years as an agent, I had...