home | site map | contact us | consulting  |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
|
CZP Article Words are Loaded Pistols How best to describe the present condition of the real estate market? Is it "cooling" or just "re-adjusting?" Will there be a "pause?" A "soft landing?" A "correction?" Are you a "bubble" believer or of the "cycle" faith? These and other buzzwords have been appearing in articles and rolling off the tongues of broadcasters in the United States, Europe as well as here on Provo. They are whirring around New York cocktail parties, being whispered in Wall Street elevators and are echoed in the streets of Providenciales. It is the language of real estate. And real estate, as we all know, is part of the language of Provo. It is a language that, while at the same time glamorous and mundane, is prevalent not only in Provo but also in New York, where residents routinely say that real estate is a topic second only to sex.. Yet as intangible as words are, they influence the decisions buyers, sellers and lenders make — and those decisions can affect the market. As Jean-Paul Sartre said, "Words are loaded pistols." While sexy and quotable, catchphrases can be misleading. Most people think a "cooling" market means that prices are falling, when it is only the rate of appreciation that is leveling. Another misconception concerns the word "dumped," as in "he was forced to dump his apartment." The perception is the market is falling, when in reality the apartment was worth more than it was a year ago. It was simply that the list price outpaced the market. As for "soft landing," most of us would think of a downward motion when really what it means is that we've gone up and reached a plateau as opposed to coming down the mountain. So if these are not the appropriate catchphrases to describe the current market conditions then what is? John Morley, Director of Sales from Connolly Zahm Properties suggests "normalized." It is misleading to refer to the current market as cooling or slowing because, until recently, the market was "on steroids." Having said that, Morley is a strong believer in real estate cycles. With over 36 years of experience, Morley states that this is neither a “pause” not “cooling”. According to Morley, Providenciales has not yet seen its moment of fame. “Believe me, we will see buyers wishing they had bought that $2M beachfront condominium residence available today; as Grace Bay Beach will soon have nothing under $1000 per square foot.” According to Ms. Liebman, Chief Executive of The Corcoran Group, now one of New York’s three largest residential real estate brokerages, "We are back to a healthy, reality-based market". As such today’s market is "healthy" yet "more challenging" for brokers and sellers. She uses the word "shift" to describe the rebalance of power from sellers to buyers and "disconnect" to explain how sellers are still pricing as if it were the spring of 2005. In a recent press release, the National Association of Realtors wrote that "the key word for the housing market is balance”. So whatever your preferred catchphrase may be, make sure you are not caught into the “could’ve should’ve would’ve” reality of missing the next boom waiting around the corner
Tina Lyra Stevens
|
 |