Our Economy in Middle Tennessee is BOOMING!
One of the most frequently used “indicators” of any economy is the housing market.
Experts keep a keen eye on the inventory of available (For Sale) Houses, Condominiums, land, new development (residential and commercial), pricing trends,and “Affordability” . . . and they rely on local Real Estate Estate Sales Professionals for accuracy of data and analysis.
On the ground, we REALTORS find ourselves literally riding a wild wave as we work through plunging then rising House values . . . and experiencing wild shifts from WAY too much inventory to virtually NO inventory in as short as a 6 month window of time . . . Paradigms are always shifting . . . EVERYTHING is MOVING – ALWAYS!
My “observer self” has noticed 2 significant trends worth noting:
- “Value Justification” is getting increasingly difficult. Even as lending guidelines seem to be loosening up, and lenders are starting to get more creative so more people who don’t have “Cookie-Cutter” jobs can obtain Mortgage Financing . . . Appraisers and Mortgage Underwriters are frequently coming up short on value. So . . . A Buyer and Seller may both agree the price of the house is fair – As do their respective REALTORS, but the appraiser and/or underwriter are less inclined to be able to justify the rate of appreciation said price indicates. This alone can be a “Show Stopper” for a real estate deal. Until this settles down, CASH is KING . . . The Buyer with cash may not require an appraisal and is suddenly WAY more attractive to a Seller.
- “With Scarcity comes GREED” In a real estate market with so little inventory of available homes, we are seeing more “game playing” than ever as Home Sellers and some real estate sales folks scramble to profit from the shortage of supply. We are seeing more and more cases of people bending the rules to meet their desires.
Interestingly . . . While all of the above are my LOCAL observations, the internet is presenting some pretty interesting twists.
More and more people (including out-of-area Mortgage Companies and “Experts”) are using these large websites as their source for data which would be OK if their data were accurate and complete . . . but it’s NOT.
Of the 3 I mention, REALTOR.COM is the MOST reliable because it IS a “Direct Feed” of listing from the local MLS.
Zillow and Trulia both use data they obtain from “IDX Feeds” which are becoming more and more random WRT to reliability every day because ANYONE can manipulate the data on those sites and not all real estate firms have authorized feeds of their listings to them. We are even seeing some “Phantom Listings” on those sites . . . houses that don’t exist . . . for the purpose of “Generating Leads” for REALTORS. BTW – All real estate agent and company sites also use IDX feeds.
I’ve devoted this edition of “Monday Morning Coffee” to such a real estate specific topic for ONE reason . . . To inform and protect my readers from falling prey to these “Greed Games.”
- If you want the most current and reliable information about houses available for sale, go to www.REALTOR.com (Anywhere in the country) or www.realtracs.com (Middle Tennessee)
- Zillow and Trulia and REALTOR or Company sites are all great places for “Area Information”
- When you want REAL analysis, contact your LOCAL REALTOR (A Pareto Realty agent would be the quintessential option)
In his APOSTOLIC EXHORTATION, Pope Francis puts the icing on this cake:
“The great danger in today’s world, pervaded as it is by consumerism, is the desolation and anguish born of a complacent yet covetous heart, the feverish pursuit of frivolous pleasures, and a blunted conscience.”
Be careful out there . . . There are people out there seem to have gone the way of the “blunted Conscience” as they chase the “Opportunity” of our burgeoning economy here in Middle Tennessee and across the country.
Rely on LOCAL!
Or “Hyper-Local” . . . Connect with me as your personal resource for ALL things Real Estate 🙂