I’m theorizing and that’s all… but what started with EBAY has grown into something more inflexible and problematic in Craigslist. I’m not talking about people getting rid of their stuff per se, in an online classified environment; what I am talking about is the disconnect between consumer experiences, what they buy and what they associate with as valuable.
The average consumer buys new or pays pennies on the dollar for “used”. This is impacting the housing market. Properties downtown are competing with new builts in Fountain… for within $10,000, a consumer can have a bigger home, with a two car garage “exactly the way they want it”. This is very appealing for buyers that typically have less than 10% to put down on a home, an all-inclusive package. Sellers in the Northeast are competing with Black Forest and Falcon North builders who offer the same thing. When buyers look at places that previously were prized due to their location, they are having great difficulty looking around older construction, older flooring, older cabinets… and they conclude “it needs a lot of work.” If they do offer, undoubtedly, that offer is nowhere near the asking price because isn’t that what you do on Craigslist and EBAY?
If you’re reading this, you’re probably on the “inside” of Ben’s Facebook Circle, and that’s a good thing. That probably means that smart money management, location, and long-term value are all fundamentals that you cling to as important. You are less likely to operate as the majority of buyers do in the marketplace. BUT… there are just shy of 6000 single-family listings right now for sale in the market. These homes are not sold to other sellers, but to buyers. With the under 40 demographic representing more than 1 in 2 buyers right now, it is highly important to understand their motivations and value associations. Again, I’m theorizing, but the totally custom experience of a $5 Frappe, and buying a formerly $350 TV for $15 I think is taking it’s toll on the market.