Property Grunt

Monday, June 08, 2009

This isn't over by a long shot

Honk if You Think It’s Over

My hand isn't even on the wheel.

Yes, there is activity out there, but I am going to side with Miller on this.

Jonathan Miller, an appraiser at Miller Samuel who prepares market reports for Prudential Douglas Elliman, confirmed that inventory levels began to fall this spring as sales picked up. But he questioned how significant the trend would turn out to be.

“You did see an upturn in activity this time of year,” he said, but “it was not a robust spring.” Mr. Miller said that the spring did not “undo the damage that occurred last fall” during the banking crisis, and that prices still appeared to be slipping, though at a slower pace than earlier in the year.

Mr. Miller says he is particularly worried about new developments that have not cut prices as much as many individual sellers have. Mortgages can be difficult to come by in these buildings, making it harder for buyers to complete deals.

To even say things are stabilizing is optimistic. Remember, credit is hard to come by. Real estate is all about OPM. Not a lot of that going around.