That’s the punch line to a crude joke that circulated on Wall Street maybe 20 years ago. This is a family- safe blog so I can’t tell more than the punch line but it involved a man, purporting to be hunting bear, who has a series of humiliating things happen to him during his quest.
I was reminded of the joke this morning while speaking with Rick Loh, an agent with Surf & Turf whom I respect and admire. He said something like, “well sure, there’s tons of inventory, but most of those houses aren’t really for sale.” I absolutely agree with Rick, but I wonder how many of the owners know that that’s the market place’s reaction to their pricing? Perhaps not many.
Rick, by the way, had another observation, namely that, for houses that haven’t been renovated since their purchase, we’re back to 1999 price levels. I’d been saying 2003 (and before that, 2004) and the leap from 1999 to 2003 levels wasn’t as great as in later years, but that’s still a significant drop. Is he right? Well he suggests that I pull out an old sold book from 1999, look at the prices and see how many that I nod my head at and say, “yeah, that’s about what it should sell for today.” great idea and I’ll do it. My guess? He’s right.