Housing prices defy logic, keep climbing

Elizabeth Rhodes is a business reporter for the Seattle Times. She published an interesting article in the Seattle Times this morning titled "Housing prices defy logic, keep climbing." You can access the story by clicking on the link below. After reading the article, feel free to weigh in with your own theories. My theory is below.

http://seattletimes.nwsource.com/html/businesstechnology/2003824885_homesales07.html

I agree with theory three. I have noticed that the inventory is slowly increasing but homes that are priced right and in good condition still sell under the average days on market (which is also increasing.)

Homes that are overpriced (even 5K) and/or have some sort of a problem, will sit there and eventually expire. An increase in expired listings skews the average days on market statistics and I think the increase in expired listings is due to the fact that some sellers are not really serious about selling.

The increase in inventory doesn't kick sellers out of the market, it simply gives buyers the upper hand for once.

There is a level of base activity that remains constant in any real estate market. The base is comprised of people who have to buy or sell due to lifestyle circumstances such as relocation for a new job, a lost job, a new family member, etc. The activity in this section of the market contributes a significant amount of stability.

During real estate booms and busts, it seems that a majority of the people who adjust their real estate related behavior are investors (because they have the luxury of being able to do so) and the fluctuation caused by that activity is what the media tends to focus on.

David Edwards
REALTOR®
Keller Williams Realty Southeast Sound
Phone: 425-890-8045
E-Mail: david@davidjedwards.com
Website: http://www.davidjedwards.com
Blogsite: http://www.davidjedwards.com/renton-info-blog.asp

David J Edwards is a full time real estate agent and REALTOR® with Keller Williams Realty specializing in Residential Real Estate for buyers and sellers in Washington’s Renton Highlands, Newcastle and South Bellevue.