BusinessCasualBlog.com

Chihuahuas or mutated 4-legged piranhas?

I'm glad I wasn't showing property to clients at this place!

Link: News - Fremont police officer survives onslaught of 5 irate Chihuahuas.

FREMONT – A pack of angry Chihuahuas attacked a police officer who was escorting a teenager home after a traffic stop, authorities said. The officer suffered minor injuries including bites to his ankle Thursday when the five Chihuahuas escaped the 17-year-old boy's home and rushed the officer in the doorway, said Fremont detective Bill Veteran. The teenager had been detained after the traffic incident, Veteran said. The officer was treated at a hospital and returned to work less than two hours later, Veteran said.

Renewed speculation on a recession following yield curve report

There's renewed speculation on a possible recession since yesterday's news that the yield curve is flattening and may be approaching an inverted curve.  The OC Register also had a piece today with some comparisons of home price impact in the year following an inverted yield curve...  (Link:  Slowing Home Prices.)

Why sell a home using a price range?

Some home-buyer clients and customers have asked what the purpose is for some sellers to place a list price for their home in the form of a range.  For example, why "$530,000 to 571,876" versus just saying $572,000?  Are they really saying that they'll consider a low-end offer at $530,000?

As you might expect, not really.  And, while that low end might seem a little disengenuous, the approach isn't really all that sinister, either. 

My customers who are reading this will know that I tell them the seller's desired price is really more in the mid-range.  In the example above, it's somewhere around $550,000.  But, to list it at a fixed price at $550,000 may bring in a smaller pool of potential buyers.  It may seem too exclusive for some buyers who might otherwise have been interested.  It may also have the effect of having many more buyers not become aware of the home at all.  The article below shares how this could be. 

And, from a "telegraphing-my-intentions" point of view, I also like to point out that in most cases, the seller is actually signaling her/his willingness to negotiate.  "Submit a written offer and let's talk about it...."

Link: Selling Using a Range May Bring Top Dollar .

The key in Value Range Marketing is that it creates a bigger pool of potential buyers by creating a dollar span that will attract more buyers to make written offers. Lund says ultimately it helps buyers get the communication process started to determine what price the seller will actually settle on.

'Soft landing' runs its course in California real estate market

Some validation below for an earlier post on the subject of a 'soft landing.'  (ref: "There is no spoon..." http://aclaro.blogs.com/realestatediary/2005/12/its_the_time_of.html)  Bottom line:  slowing sales doesn't necessarily equate to 'prices dropping'.    Generally speaking, slowing sales means longer days on market (DOM) for sellers.  And, while this may translate to better conditions for buyers as compared to previous months, it doesn't necessarily mean 'fire sales,' either. 

If you're a buyer, your enemy right now will be rising interest rates and continued price appreciations throughout 2006.  But, you'll find some solace in sellers being a little more open to negotiating and maybe not see as many multiple-bid scenarios.

If you're a seller, your enemy right now will be increasing time on market and possibly fewer buyers.  And, though you may have to consider adjustments to your original list price to attract more offers, it won't generally mean a loss.  Price appreciation is still running about 16% above last year's.  On a year-over-year basis, that's great!  :-) 

Link: Inman Real Estate News - 'Soft landing' runs its course in California real estate market.

The median price of an existing home in California in November increased 16.2 percent and sales decreased 11.2 percent compared with the same period a year ago, the California Association of Realtors trade group reported today. "The California housing market continues to experience year-over-year double-digit price appreciation, which is consistent with our expectation that the statewide median for 2005 will increase by 16 percent over last year," said Vince Malta, CAR president. "While year-to-date sales in November were 1.7 percent above last year's pace, we are starting to see the ‘soft landing' we have been expecting," said CAR Vice President and Chief Economist Leslie Appleton-Young.

Stupid Dog

I think I've seen this video before on 'Funniest Home Videos.' But this one just never gets old.

[Stupid dog video - 41 seconds]

"There is no spoon..."

It's the time of year for holiday parties.  The topic that often comes up in idle conversation is real estate.  And, we almost always come around to the proverbial "bubble babble."  ;-)  I sometimes feel like the little boy in that scene in "The Matrix" (movie) where the kid says to Neo, "... there is no spoon."  (Substitute "bubble" for "spoon.")

"But things are slowing...," they say.  And, while true from one perspective, it helps to remember if we're talking about sales activity or price appreciation.  Generally speaking, sales activity has slowed.  But, price appreciation (in Orange County, CA at least) has actually increased again since last year.

Forecast for 2006:  another increase of about 10% to 15% in prices.  But slowing (not decreasing) activity... soft landing.