Industry News

Real estate market is shifting, says ZipRealty

Company's profit doubles, plans more market expansion next year

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The national real estate market is in transition, executives at ZipRealty said during a third-quarter earnings announcement,  and the "classic sellers market" is fading away. Eric A. Danziger, company president and CEO, said "The average available inventory across our markets spiked dramatically ... to a level approximately 40 percent over a year ago," though sellers are still expecting a rapid rate of price appreciation and "buyers are acting more tentatively," resulting in somewhat of a standoff. The company also reported slight declines in median sales prices across its markets for the past two months. Danziger said some markets appear to be "at the tail-end" of this transition period. "We're not sure how long this transition period will last. It just depends how long sellers take to realize they better take that offer that comes in." Next year, "business will likely experience some softness relative to expectations," Danziger said, with a flattening in agent productivity ...