As I was driving home today after a closing, I got to thinking about how the market is always changing.
When I got into this, it was much like today. Buyers felt lucky just to get a house and sellers were drunk with power.
Then there was the looming threat of a nationwide crisis. We were convinced it wouldn’t make it to Kentucky. We all said things like “We didn’t see the crazy appreciation like California, Arizona or Florida did, so we won’t see any changes.” Only we said that with the same fear in our voices as the kids from that Stephen King movie when they talked about Pennywise the clown.
Then “IT” happened. (See what I did there?)
It slowly went from being a seller’s market to a buyer’s market.
Nobody was happy.
Seller’s were bringing cash to the closing to payoff their houses. Buyers were afraid their new house would continue to depreciate. Buyers were hitting sellers up with big repair lists. They felt the seller should just appreciate that they picked their house among the other 50 houses in the neighborhood for sale.
Then in late 2012/early 2013 we had this euphoric time. Sellers were happy because their houses were selling in less than 6 to 12 months. Buyers were happy because prices had stabilized. Sellers were okay to do whatever repairs were requested since they were happy to have sold their house. Buyers weren’t asking for as many repairs since they were happy too. They knew the house wouldn’t be worth less by the time of the closing. It was great!
Only it didn’t last.
Prices started going up. Fewer houses were on the market.
Prices kept going up. Even fewer houses were on the market.
Prices went up even more. And even fewer houses were on the market.
And now we are back to where we were when I started, only a little worse. Prices are sky high. Buyers resent it but know they have to pay the price. So, they are hitting up the sellers with big repair lists. Sellers feel like they are doing a favor to the buyer just by accepting their offer. They don’t want to do repairs.
Basically, nobody is happy right now.