ROFL!

Well, first...folks who can afford multi-million dollar places are not as affected by economic swings. They buy/sell pretty much independent of market conditions. So, that accounts for the phenomenon you've seen in your market skewing the numbers. And, you're right. I've seen it in my coastal location as well.

Now, for the second part of your question regarding realtors. Oh my...let me say that I like realtors. I need realtors. I depend on realtors. All of that acknowledged, realtors are salespeople. The same way that I, as a lender, am a salesperson. I "sell" money. When I read your post the first thing that popped into my mind was that old, horrible joke. "How do you know when a salesperson is lying?" I won't bother to finish...we all know how it ends. And, it's both unfair & untrue...to a point. Realtors are salespeople. Optimism reigns supreme when talking with clients. However, if you are direct with them & know your stuff...they quickly lose the canned pitch & acknowledge whatever's happening in their area.

As far as the website information...well, that just plain sounds like "spin", doesn't it? We can all take a series of numbers & turn them into saying darn near anything we want, right? To me, it's intentially misleading; but, just from a numbers standpoint there's nothing wrong with what they're saying. Is it right? Is it wrong? I'm not smart enough to answer that. I do know that "Buyer Beware" applies to real estate though!

Tricia

Lies, damn lies and statistics.

It is all in how you read the numbers. Someone can make the case that prices are down significantly in the $400 - $700K range, and up significantly in the $1 million dollar range. The confusion occurs if someone selling in the $500K range expects $1 million range appreciation.

Your conjecture that the market has tanked seems to be true in one price range and completely incorrect in another price range. Some would say your conclusion is as flawed as the realtor - the market is not tanked, but it is down for one segment of the sellers in that area.

Actually xamsx, prices are down significantly in the 1 million plus range as well - there are just more of those selling.

"Why would realtors try to misrepresent the market?"
Because it is to their own financial advantage to do so.

The thing is sharon, I'm not so sure that's true. If the number one complaint one hears from realtors is that sellers are totally unrealistic in what they think their homes should sell for, then it absolutely is not to their advantage to do so. It's to the financial advantage of realtors for transactions to go smoothly and the best way for that to happen is if sellers and buyers are well matched in their expectations. Hence my original question.

To get a true picture of the RE market, compare apples to apples. In my subdivision home prices go from $200k to $400k, very easy to see where the market is going and where it has been.
I would never consider using $1mil + homes as comparables to determine my neighborhood market.
Homes below $200k currently are selling at a brisk clip, wherever they are.

Selling anything requires creating a sense of urgency. If you ask any good sales person they are going to try to find a way to put out a message that creates a sense of urgency. The Realtors Association knows this as well and you can bet that they will jump on any message that creates a sense of urgency in buyers and try to ignore everything else that does not. Nothing hurts a buyers sense of urgency like delivering a message that the market is falling. That sends a message to buyers that its probably better to wait then jump.

Lastly, if you were interested in buying a Ford Mustang GT, you wouldn't go to a ford dealership and ask a manager or sales person what the car typically sells for. You know the answer you most likely will get. Why people think that Realtors are some kind of different sales animal is amazing given the fact that the real-estate business is more production oriented then the auto sales. If Realtors don't sell anything, they don't eat.

In the end, like anything, judge the source and their natural biases before you believe the message.

"If Realtors don't sell anything, they don't eat."
Not true for most REALTORS in my company as far as I know. Average number of years in business is almost 30 years.
I don't need to sell real estate to eat, well ok, maybe I eat less as I get older HA.
Most agents believe in RE investments for their retirement income.

They're salesman - they want things to appear rosy - to both buyers and sellers. Its all good aaaallll the time. No Worries. List your house! Buy a House! You can't blame them - its what sales is all about.

"List your house! Buy a House! You can't blame them - its what sales is all about."
Too bad you missed my blog where I recommended to 3 different buyers to rent instead of buy.

"Homes below $200k currently are selling at a brisk clip, wherever they are. "

No, nothing is selling at a brisk clip here in the home of the one-state recession.

I meant generally berniek.
I've been told to rent here too. But only for awhile till I know the area. No one has told me to rent indefinately.

I meant generally berniek.
I've been told to rent here too. But only for awhile till I know the area. No one has told me to rent indefinately.

Umm, if you have such through knowledge of the the local market, why ask the realtor's impression of it? The only reasons I can figure are to either test the realtor's knowledge or the realtor's honesty. Failing either of those should pretty much end the business relationship. I think you already know that.