Monday, July 31, 2006

Going For The Bait

You know what the problem is with our real estate market, it's the people who write about it and talk about it in terms of doom and gloom. Once again the press is feeding off of what is happening in other parts of the country and making general statements, without all the facts or studying the psychographics affecting Martha's Vineyard.

Sure the market has slowed down, and sure there are more properties on the market, but it really isn't that bad. Part ot the reason the market has slowed down is because more buyers are being cautious, not wanting to appear foolish and overspend. I can tell you, having worked both sides of the market for many years, sellers got used to pricing their properties well above the broker recommendations without too much resistance from the brokers, because nine times out of ten, a buyer would come along and pay the price for that property. There was little to no price resistance and the opperative expression was, "You only have to sell it once". Well, today's buyers, thinking they have the upper hand, and maybe they do, are no longer taking the "I've got to have it before the price goes up again" point of view. Any buyer in their right mind who is watching the continuous trail of price reductions week after week will sit back and wait wondering, "How low will they go?"

Another reason there are more properties on the market is because more people are moving off the Island. More people have decided to "cash out" now and move on to more affordable communities for work or retirement, or they've simply gotten tired of the many inconveniences associated with living on an Island year round --- or perhaps the commute has become too expensive. It also stands to reason, if more houses were built and more properties have been converted to condominiums, the inventory will go up. Sure properties are taking longer to sell, and sure the TOTAL inventory has risen by ~34%, but it is not even close to what the inventory was in 1990 and 1991.

I agree with Mr. Wallace, "The Vineyard market literally goes in spurts rather than a steady trend of every day, every week, every month." This is a very rich Island in all imaginable ways and it is only going to get richer. Get in at today's dollars or wait until tomorrow, you can't lose either way.


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