Property Grunt

Monday, October 10, 2005

Report from the front: When does the hurting stop?

Turnout was very, very low yesterday as the Grunt spent his Sunday waiting for
buyers that never came. One could say it was due to the three day weekend and the Jewish Holidays. But as I have stated before, I have seen buyers come out during snowstorms. And if they are not coming out during a rainy three day weekend then forget it.

At one of the open houses I passed the time watching the movie Dodgeball. And I was not once by buyers. Why? Because there were none. Btw, did anyone get the GiJoe references? I think it is obvious how bad things are because I have no interesting anecdotes about buyers.

The recent NYT article only confirms my analysis of the situation.

Caught in the middle of these currents are the brokers who tend empty open houses like farmers waiting for rain, the cautious buyers wary of entering a peak market and sellers who cannot fathom why no one wants to buy their once-coveted homes.

The boom is over. It is time for sellers to bite the big one. Drop your prices and you might have a chance to get out the hell of dodge. All you have to do is take a look at this recent entry on curbed that the masses will come.

Although I suspect October will be chock full of price reductions which will allow some properties to move, I am unsure if that will help the majority of sellers. With higher interest rates what will most likely happen is that buyers will be stay on holdout vigil to see the bottom of the market. If buyers can't get a sweet deal on a mortgage, then they will get it a from the purchase price.

Anyone else have anything to report on the open house front?