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Top REALTOR Brokerage Sentiment Survey Not Optimistic

June 17, 2008

A sample of 71 of the top Wisconsin Real Estate brokerages was conducted in late May to early June 2008.  There was a 26.7 response rate.

What is interesting in the responses is that the optimism of the past few years seems to be gone.

What I mean by that is the following:

  • Respondents believe that existing home sales in May or 2008 were weaker than May of 2007.  Volume of sales in June 2008 is expected to be weaker than June 2007 and overall the 2nd quarter of June 2008 is expected to be overall weaker than Qtr. 2 of 2007.
  • Looking ahead into the 3rd quarter 2008, a solid majority of respondents believe existing home sales in Q3 2008  will be the same or above Q3 2007–the only sign of optimism in the survey.
  • For the second month in a row, the respondents overwhelmingly believe that sellers in Q2 2008 are more motivated than Q2 2007 home seller.  In fact, 89.5% indicated that motivation levels were above the Q2 2007 levels, and the remaining 10.5% judged them to be the same.

The opinion of Dr. David Clark, Professor of Economics and Economics Chair at Marquette University is that the 2nd quarter 2008 will likely fall below the levels established in Q2 of last year, but with improved price flexibility by sellers and a continuation of low mortgage rates, we are more likely to see sales volumes in the 3rd quarter of 2008 in the vicinity of Q3 2007.

Bottom line, if you need to sell get the property in the best condition possible and price it in the bottom quartile of the homes that you will compete with.  If you don’t NEED to sell, it’s best to sit tight and wait this out. 

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