So, we still have the spilt between buyers and seller

I watched two deals go south today because my buyers (and I) think the market’s going down, while sellers think it’s coming back up for air. I make no special claim to brilliance on my part but my clients are pretty sophisticated businessmen and they’re on the same wavelength I am.

So we’ll see: either there will be some great bargains come mid-September or the market will zoom,and some buyers will have to pay  more than they expect to. I’m advising  my buyers to wait, and  pick up another 20% on a number of failed houses.

5 Comments

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5 responses to “So, we still have the spilt between buyers and seller

  1. Anonymous

    Debt markets suggest deflation and double-dip, so buyers should include ample margin of safety on any valuations of an illiquid asset

  2. Fly Girl

    Anon,
    Can you repeat that in ENGLISH for us non-$-types?

  3. Marisa Noel Brown Sightings

    http://www.patrickmcmullan.com/site/event_detail.aspx?eid=33325

    1). Walter’s daughter read a book this summer,

    http://www.hauteliving.com/2010/04/doris-world-lunch-at-bochic-jewelry/

    2). she ate lunch,

    http://www.newyorksocialdiary.com/node/1901094

    3). and attending “a special cocktail party” at Akris in NYC to support children.

    Marisa, How can you keep burning all the other people’s money? Give it back. It is not yours.

    So much for grief and shock over the loss of all the Madoff money thanks to Daddy & your own husband Matt. Walter and Monica, you raised your youngest child well.

    Once you taste the good life, it is hard to be humble.

  4. Retired IB'er

    You are correct. Patience will be rewarded on the buyer front, not so much if you’re a seller…

  5. Priapus

    Fly,
    Anon means that rates, short rates ie. 2 year treasuries and longer dated treasuries ie. 10s, are collapsing in yield daily. Why? Some say safety (return OF capital), some say indicative of a massive Japan like DEflation. In the DE scenario, debt is bad.

    The short version is that the country, heck most of the developed economies are facing a hangover from spending beyond our means on individual, state and federal level. When you are in a hole, the first thing you do is stop digging. Austerity is the word du jour (du decade?) and when the largest economies ain’t spending, they’re saving. Saving reduces debt at the expense of consumption. Reduced consumption means Lower tax receipts at the state and federal level. Which means less spending and employment. Thus the downward spiral of deflation. Japan has been playing this tune for 20 years.

    An aging population demographic exacerbates the problem by having fewer revenue producing workers, and greater baby boom entitlement recipients. Ie. US!

    In short, we’re hosed, and the treasury market knows it. P.S. Bernanke knows it too. Prices don’t lie, politicians do.