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Old 10-19-2005, 11:17 AM   #8
beaner
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Quote:
Originally Posted by codeman671
After talking to two realtors in the last 24 hours I do not necessarily agree that there is a slowing in the market other than the typical time of year that it is. Real estate always falls off in the fall, ...

I cannot attest to the Boston market but with the prices of anything in Boston I can understand why inventory is not moving.
Most realtors will not admit that the market is headed south, because if the public believes that sales are slowing and prices are dropping, it can become a self-fulfulling prophesy. Obviously, sales slow down every October; that's why you have to compare this quarter with the same period in prior years. One of the market indicators that realtors carefully track is "days on market". Unfortunately, I read recently in the Boston Globe that some less scrupulous Boston-area agents are cancelling some listings and then re-listing them if the property isn't selling. That skews the "Days on Market" data. (Obviously, that approach doesn't work so well in small towns, but in a city it can make a property appear to be a brand-new, "hot" listing, and generate more interest). With "re-listing" and realtors' refusal to admit a market slowdown, it's difficult to get an accurate market snapshot. But as someone who has been watching the market carefully for the past year, it certainly appears that property inventories and days on market are both increasing.

I know two area couples who purchased new homes last spring, and then couldn't sell the old one even after they dropped their price. The "For Sale" signs that languished all summer turned into "For Rent" signs by fall. Not everyone can carry two mortages, though. Eventually sellers will have to face the reality that it's a different market than it was 2 years ago.
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