LA Times: Sellers' New Math

An upbeat article in the June 18 LA Times describes how the southern California market has changed and how homes are staying on the market longer now than a year ago.

Although the article mentions that DOM (days on market) numbers have increased substantially, it does not mention how days on market statistics can be skewed when homes are re-re-re-listed at progressively lower prices. So DOM by this time could be significantly more than what the realtor groups are "officially" reporting. (As a side note: the realtor on whom I depend for DOM stats in the South Bay area did not issue a report for May, which makes me go - hmmmmm.)

There is still no sign of concern or panic. "The market is normalizing", one realtor says, which is "quite refreshing". Buyers are no longer panicking, chirps this same realtor. Many sellers are still refusing to lower their asking prices because they "must" get a certain return. One seller complained that he almost had a deal closed, but the buyer felt, "We're coming into summer, let's hold out." Still another buyer says he "doesn't feel insulted" that it took more than 120 days to sell his home "there are several houses that have been on the market quite a bit longer than ours."

Folks, do you still sense just a touch of arrogance here? The tone of the article makes it sound like sellers still in most cases think they are in the driver's seat, they just have to expect to wait longer to get their properties sold. Shaving 5% or 10% off their asking prices is tolerable, while knocking more off is unthinkable. Unlike San Diego, median prices have not gone flat or declined YOY.

However, whatever hits the newspaper is a rear-view mirror look at current market conditions. How many buyers out there right now are thinking "Well gee, what's the hurry, let's hold out!" ???