Current Market Conditions 6/18/06
The summer market is here. Only one word can describe the r/e market - stagnation. Inventory is up, but stagnant, prices are down slightly, but stagnant. Even the air is stagnant today, the usual NJ high humidity summer day. I got a mailer from a local realtor, probably the busiest in my area. I though it would be one of the usual r/e letters I receive about houses listed and sold and what a great realtor that particular realtor is. However, this letter was different. The letter states "The real estate market has changed. In these new times you really need a good realtor", i.e. "him". To my knowledge, this is the first realtor in my area who has stated in his mailings the obvious fact that the market has changed. Alas, prices are still high, and there has been no mass capitulation. I continue to stand by my forecast that unless there is a "market event", the r/e market will deflate slowly over several years. Of course, there seems to be suficient risk out there for such an event to occur.