A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
The real Real Estate Recovery
I am always
reading statistics about how the Real Estate market is fairing and what markets
are doing well and what markets are not. When the market was being pushed by
all cash buyers, there seemed to be great excitement that Real Estate was back
and was going to give the economy a great boost. Now it seems as though the
excitement has calmed and sales have slowed. Forget about reading all the
stats, if you want to know what is going on in your neighborhood, look around
on the weekends and see how many open house signs are posted. Probably not too
many. Remember 6 or 7 years ago, there were open house signs everywhere. Now it
seems as though no one is selling.
I am not a psychologist,
but I think that there is a psychological reason for the lack of home sellers and
it could take 10 years from the highs of the market to recover.
In my
neighborhood, a home just sold for $550,000, this same house at it high would have
sold for around $800,000. That is a $250,000 cut in profits. Now from a Real
Estate professional’s standpoint a house is only worth what someone is willing
to pay for it, but from a homeowners mindset they are losing a great amount of
money. How do you convince someone to sell, if they think that they are losing money?
In my business of Property Management in Anaheim Ca. I find there are 3 main reasons that people sell their homes.
1. Moving to a new job in another area.
2. Moving to a larger home for an expanding family
3. Downsizing due to retirement
Take the
first reason, moving for a new job. Well there are not many jobs out there, so
if you have a job you are staying. No reason to move.
Take the
second reason, moving to a larger home. With the uncertainty of the economy,
many people don’t feel that taking on more expense is the right move.
Take the
third reason, downsizing due to retirement, many people have counted on the
profits from selling their home to retire on, but now that prices are much
lower than a few years ago, they may want to hold on a little longer and see if
prices will rise.
All those
reasons are very real, and will change over time. People will get new jobs, families
will need more room and retirees will sell their homes to downsize. Trying to convince
people that their perceptions about the Real Estate market are shortsighted, is
a losing proposition. All this just takes time; people will move forward when
they are ready, or when they are forced by circumstances. I said that I think
from a psychological standpoint it will take 10 years from the high to change perceptions,
so when we get to 2017 or 2018, you will see Real Estate in a real recovery.
A.D. Cantelmo Property Management Specializes in Property
Management in Orange County Ca.