One of the earliest hi-tech phrases was “garbage in – garbage out”. I keep reading statistics. I keep reading blogs. I hear agents sharing the same stories. The market across the country is labled over-laden with inventory. Signs are in yards block after block. It is a buyer’s market. Really…read on.
Visitors to websites find page after page after page of listings. One begins to think that there are more houses for sale than could possibly be purchased. Agents do searches for clients and come up with literally hundreds of possible listings to view. Touring new homes on the market becomes a two day adventure every week and at the end of those two days, there remains many homes that are never seen.
Everyone says………..we have surplus inventory. The NAR and various local associations all offer what they purport to be empirical data that would indicate it is a buyers market.
It’s a DAMN lie !
The data is not accurate. The data includes homes that appear to be “for sale”, but that sale will not happen. The analysis is skewered by mis-labled homes. Every MLS is at the mercy of agents that enter the data. Agents all across the country do the listing appointments and take the listings. Taking a listing does not mean anything other than the owner of the property would like to sell.
Just taking the listing does not mean it is available for sale at the listing price.
If one goes through their MLS and removes all the 3rd party approval needed listings and removes all the short sale homes, the rest of the listings represent what is accurately available. There is no local or national standard for any MLS that requires the home to be actually available at the price listed.
If the owner has not filed the proper paper work to have a short sale approved, the home is not really available and the listing merely represents the misguided efforts of the home owner and the agent chosen to list the property. It may be available in the future. It is not a real for sale sign in the yard. It is a sign that the owner is in trouble and has sought the counsel of agent that does not understand how to handle a short sale.
Now, there are the homes that are on the market in which the agent has done everything and the owner has submitted paper work and the lender has agreed to go along with the effort. Sure they are in the mix. Of course, if an offer has been submitted to the lender for approval, they still appear as active in the MLS. There is no way of knowing that you are spending your day showing homes that may be under contract tomorrow. No one is mentioning that the bank has an offer and there is no category in the MLS for this home as well. After all, the bank wants to get the best offer and the bank has no concern for the groups of home buyers that are looking for a new home that they can actually own.
Remove all the listings that are “for sale” but not actually available and you will discover that the cupboard may be bare and the market is not quite as over loaded with inventory. It may appear that way, but it is not as it appears. Surplus inventory…we don’t know. Buyer’s market….we don’t know. The MLS is accurate?
It’s a DAMN lie !