TAM Blog

There’s no shortage of articles and headlines focused on the demise of our real estate market nationwide. The doomsayers have be predicting the burst of a mysterious ‘real estate bubble’ for years. And, we hear of another bank in trouble for questionable lending practices almost everyday. It all sounds really scary, huh?

Well, I was really proud of the position taken by Tam Realty REALTOR and owner, Kira Swaim, last week when interviewed by the Marin IJ for an article titled Single-family homes sales slide, median jumps by Jennifer Upshaw (see the article at http://www.marinij.com/portlet/article/html/fragments/print_article.jsp?articleId=6885364&siteId=234).

Synopsis: Homes will take longer to sell in a slower market (note: it’s a slower market, not a cheaper market – and certainly not a bubble bursting market). This is a bit scary for a market that spent the better part of the 21^st century enjoying skyrocketing prices, multiple offer scenarios and historically low lending rates. Don’t panic! As Kira told the Marin IJ, solid, well-priced homes are still selling – even today, but they do take a little longer. A recent study I completed reflected the time it takes to sell a 2 bedroom condo/townhouse in Novato is currently a little over 3 months. So, be prepared. Homes won’t sell in 1 weekend in this market, unless they are under-priced. Of course, if you are in a situation where you can’t wait to sell, then consider pricing the home accordingly.

Other thoughts and lemmings: What is it about our makeup that makes us want to run the same direction as everybody else? Could it be the same reason that cows in a field seem to always be facing the same direction? Specifically, when the real estate market is red-hot, everybody wants in – even if it means paying a premium. But, as the market slows, or in our case, becomes balanced, buyers want to wait. Wait for what? Wait for everybody else to help drive the prices up again? Wait for a climate where you can’t negotiate with sellers? Wait for a market where you have to write an offer without prudent inspections and/or contingencies? It doesn’t make sense for homebuyers who are trying to buy homes to live in. I concur that this is not a time for the ‘quick flip with profit’…but that’s not the typical buyer. If you actually want to buy a home to live in – and to create a solid long term investment – buying when the market is not overheated is sound advice. What ever happened to ‘buy low, sell high’?

Right now in Marin County we have solid inventory, sellers willing to negotiate and a general lack of competition among buyers.

This is a great time to consider buying in Marin!

Mitch Todd/Realtor

member of GreenerMarin

at Tam Realty

415-259-7082