Market Improvement: How Will We Know?

I was disappointed that more attention wasn’t given to foreclosure realities and rebuilding the housing market in the President’s State of the Union address. The President’s proposals for refinancing underwater mortgages and investigating abusive lending practices focus on the fallout from the current crisis. But they don’t have any influence toward making the market better.

So the question everyone seems to be asking: How will we know when the market is better?

To me, it will be when homeowners quit buying down as a means to save money or stave off foreclosure. When most sellers are again choosing to sell their homes as a means to purchase something more valuable, it will be a true sign of market strength.

At WEA, we have a unique perspective on market strength because so many of our buyers and sellers are repeat customers. We have long-term close relationships with clients, as well as the properties themselves. We see the same people and the same estates over and over. As a result, we have insights into the reasons a property is being sold and where both buyer and seller are headed next. When both are moving on to bigger and better things, I become quite optimistic. When they continue to buy down or out, the light at the end of the tunnel is much more distant.

In the meantime, luxury realtors have a responsibility to address the realities that exist in our market. At WEA, we place a high premium on working with sellers to balance their needs with the realities that exist in the marketplace. Through appropriate pricing and focusing on each luxury homeowner’s long-term needs, we reinforce ourselves and our industry.

That’s the WEA WAY.