Wednesday, June 23, 2010
Before the recession, people simply looked for a house to buy. Later they got squeamish just thinking about buying. Now they are on a quest for perfection at the perfect price. . . .
It is a reversal of roles from the boom, when competing buyers were sometimes reduced to writing heartfelt letters saying how much they loved the house and how they promised to eternally worship the memory of the previous owners. These days, it is the buyers who are coldly seeking the absolute best deal while the sellers are left in emotional turmoil.
“We see buyers who must have learned their moves from the World Wrestling Federation,” said Glenn Kelman, chief executive of the online broker Redfin. “They think the final smack-down occurs at the inspection, where the seller will be reluctant to refuse any demand because the alternative is putting the house back on the market as damaged goods.”
Everyone expected the housing market to suffer at least a temporary hangover after the government’s $8,000 tax credit expired, but not necessarily this much. Preliminary data from around the country indicates that the housing market began swooning last month immediately after the credit was no longer available. In some places, sales dropped more than 20 percent from May 2009, when the worst of the financial crisis had subsided.
Bad news for the housing and construction industries, and a possible signal of a double-dip recession. I think that last part about the $8000 tax credit is telling. Once again, the market for housing was artificially propped up by a policy decision to promote home ownership.
This blog is an Amazon affiliate. Help support Land Use Prof Blog by making purchases through Amazon links on this site at no cost to you.
- Deborah Curran on Field notes on navigating a POPO
- Stephen Miller on Commissioner's Corner: Should a Commissioner Be Permitted To Peak at a Google Maps View of a Project Site in a Quasi-Judicial Hearing?
- Ben Davy on Commissioner's Corner: Should a Commissioner Be Permitted To Peak at a Google Maps View of a Project Site in a Quasi-Judicial Hearing?
- Jesse Richardson on Commissioner's Corner: Should a Commissioner Be Permitted To Peak at a Google Maps View of a Project Site in a Quasi-Judicial Hearing?
- Stephen Miller on New Arkansas law requires local governments to pay for a "takings" where certain "regulatory programs" reduce FMV by at least 20 percent
- Shocking Allegations of Rough Justice at a P&Z Hearing in the Rural West: Environmental Activist Opposing Oil and Gas Project at Public Hearing Charged with Criminal Trespass and Spends Five Days in Isolation
- Cheever & Owley on Enhancing Conservation Options
- Planning for States and Nation-States in the U.S. and Europe
- New study highlights worker conditions in the sharing economy
- Audubon honors Women Greening Journalism