Update from The Leadership Council

I just came back from a meeting of my peers from big independent brokerage firms around the country.  Things are definitely picking up everywhere, and there was much more optimism in the room than in the past few years.  Many places have gone through their foreclosure sales, and inventories in those spots are very low compared to prior years.  Connecticut is behind in that regard, but has seen similar growth in company dollar and activity.  At Pearce, we are up 46% from last year at this point, so we're excited!

Around the country, first-time homebuyers are leading the way, with most sales at levels below $300,000.  There are still two parts of most markets--one for the listings that come on and sell almost immediately, and another for the overpriced, stale, or problematic listings that are still sitting there.  Taken together, the average time on the market is just over 100 days, but there is a large variation, and a much greater supply over $500,000.

It was interesting to learn more about the Denver market, which is hot at the lower end, and to see the very impressive Coors Field one night (although the Rockies lost decisively and the weather was a lot colder than it was back here!).  And, of course, it was wonderful to return to spring in Connecticut!

Back Down Again?

It's quiet in our offices this month--really, really quiet. Now we're reading that the national trends say that the uptick ended in about July, which, coincidentally, is what we saw. It was far busier through July than it typically is in the summer. It was slower in August, but that is almost always true. After Labor Day, we usually see a marked increase in activity. That lasts until about Halloween, or maybe Thanksgiving, and then the buyers hibernate like bears until the spring.

We're not quite sure what to make of this latest turn of events. The stimulus program and the $8000 tax credit for first-time homebuyers were supposed to be making the phones ring. Indeed, it did, but the phones have slowed down. I can only speculate, and my guess would be that the market will not stay up until unemployment comes down. I also think that the hoopla over national health insurance has people worried about costs. Whatever the reason, it's not good.

One of the earliest CEOs of General Motors famously said that "what's good for General Motors is good for America". I would argue that the same is true of real estate. The government needs to do what it has to do in order to stimulate the real estate market at all levels, not just at the lowest end. The recovery depends upon it.

Needed: New Listings

Despite the recent blizzard, the spring market is popping. We just have one little problem--not enough to sell! Inventories in most parts of our markets are very low. We're not counting things that are overpriced and have been on the market for a long time, just well-priced and well-maintained homes. If we could list things for first-time homebuyers to move into, those people could move into other houses, allowing those people to move, and well, you get the idea...

We continue to see good listings going to contract within a few days, particularly in the East Rock and Spring Glen neighborhoods. The best ones are going for well over the asking prices, indicating that there is strong pent-up demand in certain price ranges.

It may be hard to believe, but I'm going to end this while it is a wholly positive post!