Things don't change, we change. So wrote Henry David Thoreau in the mid 1800's. Apply that concept to Madison, WI 2011: "The real estate markets don't change, we change." First to go is faith in Magical Thinking. "I want it to be, I will think it to be, and if I can see it in my mind, it will be for me." OK, right.
The USA's history of victory always includes honest assessments of our positions and changing our sentiments. For example: Women's Suffrage, Civil Rights, the 1960's. Without exception, all challenges include an oppositional force of power influencing the population to put their hope in magical thinking. "If wishes were horses, the poor man would ride," my Dad said to me more than enough times. Reasonable expectations will move us to higher and firmer ground in our real estate markets, and I see reasonable expectations taking hold across Dane County.
All over Dane County, home owners are starting the selling process with expectations of value unsupported by the evidence of recent sales. More than 160 days, over 5 months time, is spent holding on to lofty expecations. It seems the mindset is something like this: "I know the real estate market is down all over the country and in Madison. My neighbor can't sell his house. But that's them, not me." The first quarter sales in Dane County, show the trend of reasonable expectations is taking over where magical thinking has failed to spur a wide recovery. Over and over again, the owners who adjust their expecations (price) to meet the demands of the buyer (value or tremendous value) are closing on the sale of their real estate and gettin on with their lives. After five months, the average seller is getting an accpetable offer in about 60 days or less. It's always either time or money.
McFarland home owners are getting 98% of their last asking price in 140 days, but they take 100 days before they let go of expectations or old information.
Rural NW and SW Dane homes over $299,000 recorded 14 sales in the first quarter. With sales prices showing 83% of initial asking price, should we conclude anything but missed expectations? These are patient people as they ride the market for six and a half months before conceding price. In the end they are getting 94% of their last asking price and those offers are accepted in about 2 1/2 months. The first asking price is an average of $552,000 and the selling price averages a $100,000 less. These sales are not distressed sales, however, we can conclude the owners may be a bit stressed by the end of the process.
People change and the more we let go of what once was, the sooner we enjoy what is.
No comments:
Post a Comment