There were 205 new listings yesterday and 137 sales, for a sell/list of 66.83%. Inventory hit 11,348, while over 90s reached 2,445, or 21.54%.
As rep tryouts begin and summer winds down are what are we going to see? Are we at a top? Will this global liquidity crunch become a spiral downward? That’s the question on everyone’s minds. I’m confident that we won’t see catastrophic losses in either the equities market nor in the local real estate market, but that’s probably based as much in my innate optimism as anything else.
I’m not hesitant to recommend good buys these days, but I examine the potential downsides with clients at length. I think we’re going to have some tough slogging for a little while in equities (even if, as we’ve seen so far, buyers return after each mini-crash). The classic scenario with the bear in equities is that after he leaves you uncover your head, look around, and see him coming back. That alone tells me that we haven’t seen the end of the recent volatility.
That can be both good and bad for real estate. Stocl market volatility combined with lower priced, stable and safe real estate and cheap money means price appreciation for real estate. What does stock market volatility mean for expensive real estate? Because, after all, that’s what we have to offer equity market refugees. Right now, if you got out of equities prior to the recent volatility, would you move to real estate or stay in cash and risk some short term losses to inflation?
Listings haven’t been as strong as they were in the past, but sales are also slowing. Cold this market simply chug to a lower level and see price stagnation? Intersting times indeed.