Leavenworth Real Estate Update – Quarter 3 2009

Leavenworth Buyers and Sellers are in a Stalemate.

Photo by Lilit

In most markets, an oversupply of  product (in this case homes) leads to a drop in prices which then leads to sales. The law of supply and demand. When supply exceeds demand, prices fall.
Of course, loyal readers know that the Leavenworth real estate market is no “normal” market. For some time we have had increasing supply and few sales, yet Leavenworth home prices have been fairly stable.
The Q3 numbers show a similar trend.

High Inventory
Low Sales
Stable Prices

3rd Quarter Sales and Prices

What do I mean by Stalemate?
Buyers in the current market look at the inventory and surmise that sellers in the current market need to drop their price or accept a very low offer. Sellers look at comparable homes for sale on the market and the few comparable sold homes and think that they are offering their home at a fair price.  Unfortunately, when it comes to negotiating, neither side is willing to concede much.
By my rough count, Allyson and I have been involved in at least 15 offers this year, representing either buyers or sellers, that did not result in a sale.  This is 15 buyers who could not come to agreement with a seller.
Where do we go from here?
The market value of a property is that price where buyer and seller AGREE on a price. If the buyer and seller can’t agree, then neither party is right about the market value.
Sellers need to re-adjust their perceptions about the market and be prepared to engage buyers with a bargain hunting attitude.
Buyers need to realize that there is a reason we see so few Leavenworth foreclosures.   Most homes were bought as second homes by well qualified buyers. They may want to sell, but they don’t need to.  The list price of a house is usually a good indication of what the seller thinks the house is worth – the lower you offer below that price, the more you are likely to encounter resistance.
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Required Disclaimer
NOTE: This representation is based in whole or in part on data supplied by the North Central Washington Association of Realtors or its Multiple Listing Service. Neither the Association nor its MLS guarantees or are in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the Market.