Venice Airport:

Realistic prices help ailing home market
from the Arizona Republic, reports that the wide gap between what a home is listed for and what it sells for is shrinking, which means Valley home sales could start to pick up if more buyers and sellers agree on prices. "Both buyers and sellers are readjusting their expectations," said University of Arizona economist Marshall vest. "Buyers are coming back into the market with reasonable offers. More homeowners are pricing their homes to sell." Vest analyzed data from the Arizona Regional MLS and found that the spread between what Valley home prices sold for in March and what they were listed for is the narrowest it has been since mid 2004. Valley home listings hit a high of 50,000 recently, and that needs to come down for a healthy market. "People are realizing this isn't a fad," said Margie O'Campo de Castillo of Arizona Dream Realty. "Listing prices have to come down for homes to sell, and buyers have to be realistic. It's good to see it finally happening."

Sotheby's eyes Valley's real estate from the East Valley Tribune,
reports that Sotheby's International Realty Affiliates is moving toward opening a franchise in the Valley by the end of 2007. Operating in more than 20 countries, the firm serves high-end buyers on the hunt for third, fourth and fifth homes. Sotheby's has talked with several Valley franchise candidates who run existing agencies over the past year. Scottsdale real estate agent Dean Benigno, who specializes in golf course properties, said he isn't surprised Sotheby's is entering the local market. "This Valley has become more international over the years. It's not just a local market anymore," he added. Scottsdale broker Sandra Wilken said the entry of Sotheby's into the market would benefit her business by bringing more clientele into the Valley. She added that her company, which does a lot of out-of-area deals, would be interested in working with Sotheby's.

Home sales rebound still on hold the Business Journal of Phoenix,
reports that due to the tightening of mortgage loan standards, don't look for a rebound in the housing market for most areas of the country any time soon. "The housing correction is going to be prolonged," said Celia Chen, director of housing economics at Moodys Economy.com. "Mortgage lenders are becoming much more circumspect. Lenders are not going to be handing out money as readily." Even NAR economist David Lereah admits that the tighter lending standards could be a drag on the market through much of the year. David Seiders, chief economist for the National Association of Home Builders said "builders are reporting direct impacts on both sales and cancellations as prospective buyers are unable to get mortgage credit or are unable to sell their existing homes because of tightening credit."

IN CASE YOU MISSED IT: Hi-Tech Real Estate Moves In [CBS 60Minutes]
Brad Inman weighs in: "Anyone who started an online real estate company in the last decade appreciated the 60 Minutes story. Whatever the business model, it was very difficult to avoid the traps set up to snare us. However, I do not beleive many of the online failures can be blamed exclusively on industry conspiracies. Sloppy execution accounts for many business flops."

Now comes Larry: People, grow up! There is room for both services. Make no mistake about it, RedFin is a discounter. However, they have no right to the MLS which is proprietary to the NAR! Let RedFin and their supporters start their own listing service.
But, please, realtors, don't pretend that the 6% commission, paid everywhere, isn't illegal price fixing. It is.

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