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Redfin reports a "significant" slip in home sale activity, but it's not the economy, says CEO...

Redfin reports a "significant" slip in home sale activity, but it's not the economy, says CEO Glenn Kelman. "The problem is there's nothing to buy." His comments jibe with other reports suggesting high inventory numbers are misleading as much of that stock is in areas that only got built because of the bubble. In decent locations, the balance actually favors the sellers.
Comments (9)
  • InvestingInMobile
    , contributor
    Comments (53) | Send Message
     
    If true, this is a good sign. People having to spread their geographical searches will help spread the recovery.
    6 Jul 2012, 12:51 PM Reply Like
  • wigit5
    , contributor
    Comments (3969) | Send Message
     
    Or the lucky people selling homes in desirable areas will be great, and those who bought in less than desirable will be stuck with a house they can't afford or don't want!
    6 Jul 2012, 12:54 PM Reply Like
  • TAS
    , contributor
    Comments (1983) | Send Message
     
    Redfin is nuts.

     

    I am involved in real estate in six states and there are a glut of homes, for sale/abandoned/ listed in all areas. Sure, there will be a few bright spots, such as NYC and DC, but to claim there is a shortage of homes for sale is an insane observation.
    6 Jul 2012, 12:55 PM Reply Like
  • Atkins
    , contributor
    Comments (1037) | Send Message
     
    Agree with TAS.

     

    After that comment by Redfin's CEO, I am wondering what island he is living on. Maybe St. Barts.

     

    The Midwest market remains a mess, albeit much better than the coasts. Lower-end houses are selling well, but that's it. Higher-end houses are a disaster. The price decreases are shocking, and that is within a region known for its lack of volatility. I know several people who bought last summer, thinking they got a "bargain," and they are now grumbling that they should have waited because they could have bought the same house for an additional five or ten-percent discount in 2012. My best friend is a successful real estate agent, and he echoes my thoughts above. He's doing very well on lower-end housing but sales in the middle and higher-end ranges are sluggish at best.
    6 Jul 2012, 01:03 PM Reply Like
  • glenos
    , contributor
    Comment (1) | Send Message
     
    Fo Sho. Certain Boston markets are crazy right now, and inventories of quality homes and condo's are down so it has definitely become a sellers market in select areas. In fact, a lot of sellers are purposely lowering the asking price so they get a number of buyers out to see the home, and subsequently set the proverbial hook. Once a number of buyers are convinced they want the home it obviously causes a bidding war, which is becoming a regular occurrence.
    6 Jul 2012, 12:57 PM Reply Like
  • InvestingInMobile
    , contributor
    Comments (53) | Send Message
     
    I am an hour outside of Boston and my backyard indicator shows that we have had more sales this year in the 750k range than in the previous several years combined.
    6 Jul 2012, 01:13 PM Reply Like
  • sosleep
    , contributor
    Comments (5) | Send Message
     
    I own a condo in Brighton and its been cash flow positive for 5 years as rents steadily crept up. During that same time period zillow claimed a 15% decrease in value. Went looking around recently in the same area (Allston/Brighton) and there are only a handful of 2 beds available which require a ton of work. I'm convinced the market has recovered in high quality areas but we are so backward looking that everything in recent memory is too glum.
    6 Jul 2012, 01:37 PM Reply Like
  • InvestingInMobile
    , contributor
    Comments (53) | Send Message
     
    Zillow is not accurate. Their algorithms are relatively new and have yet to go through a cycle like this.

     

    Massachusetts recovery does not mean the rest of the nation is doing well. We have a very strong Biotech industry that has been spurred on by the billion dollar life sciences initiative. I just wish we were doing as strong in the tech market as the valley. The country needs more of these modern economy jobs.
    6 Jul 2012, 01:43 PM Reply Like
  • Topcat
    , contributor
    Comments (413) | Send Message
     
    Seattle is also seeing good sales in the best locations, w multiple bids. Location location location as usual.
    6 Jul 2012, 02:06 PM Reply Like
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