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E As In Us Prepare For The Crash

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http://www.builderonline.com/industry-news...rticleID=218042

An online VI magazine article. How American EAs come to grips with the new reality of a crashing market and make the adjustment rather than spin the stats like UK EAs are doing:

A transition from a seller's to a buyer's market is underway, and agents say they are spending more time trying to get clients to understand the market has changed. They note homes are sitting on the market longer and price gains are slowing as higher interest rates make buyers balk at exorbitant prices.
"We need to readjust sellers' expectations," says Joseph Pluscht Jr., general manager of residential real estate at Patterson-Schwartz in Wilmington, Del. "
But we just don't say we want to reduce the selling price, we tell them, 'Here's why.'"
With many sellers still in denial about the cooling market, the spread between asking prices and actual selling prices could widen if sellers set prices too aggressively, says Jonathan Miller, president of Miller Samuel, a New York-based home appraisal firm.
It will likely take six to nine months before agents get sellers adapted to the new pricing model, Miller says. Until that occurs, sales could stall.
To avoid a precipitous drop in sales and reduce pricing errors, Realtors have embarked on an education campaign:
*Patterson-Schwartz is now running a training course, titled Preparing for a Changing Market. It is designed to provide its 350 agents with help compiling and interpreting key market data that will boost their persuasive powers when approaching clients about the impact of a cooling market.
*Lyon Real Estate in Sacramento makes available to all of its 950 agents a "Facts and Trends" report filled with key market data, including up-to-the-minute stats on inventory levels and pricing trends, some that examine subdivisions and two-block grids.
Sellers have to "get a grip on the market,"
Michael Lyon says.

The article will warm the cockles of your heart during this period of unseasonably cold weather here in the UK. The US market in California to which this article mainly refers, is virtually identical to the UK. Same level of HPI over broadly the same period. Very similar prices to income ratios. Market peaked about 10 months ago--much the same as here.

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Sounds like that EA course could be useful in the UK too

It may be a good idea for the US to send some experts over to the UK to educate our EAs on how to come to grips with a shifting market. The Americans seem to be a resilient bunch and figure out ways to make money in both crash and boom periods. Now that our market is in crash phase the EAs and VIs seem to remain in denial and cut their own economic throats.

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It may be a good idea for the US to send some experts over to the UK to educate our EAs on how to come to grips with a shifting market. The Americans seem to be a resilient bunch and figure out ways to make money in both crash and boom periods.

In the US realtors have to be licensed and undergo training and professional qualification, in the UK any old crook can become an EA. A key difference.

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In the US realtors have to be licensed and undergo training and professional qualification, in the UK any old crook can become an EA. A key difference.

It's a 3-6 month course at night school, then you have to pass the exam. Yes, it is better than nothing, but...

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Those foolish EA's just keep looking at the stats I guess.

If only they knew the crash was under way.....

Oh they know DM they know. Spoke to a lady in Hunters EA in Harrogate on Saturday. Apparently nothing has moved at any level - upmarket duplex/terraced houses/detached - for some weeks. Viewings and new instructions have all but disappeared and she says the situation is worse at their Leeds office. Any new property they have got has been from other agents who have lost the business. This lady would love some retraining....but first she would like some clients.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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