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Peggy Duffy

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Keeping an Eye on Real Estate
by Peggy Duffy   
Not "rated" by the Author.
Last edited: Sunday, February 05, 2006
Posted: Sunday, February 05, 2006

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You don't have to work in real estate to know there's been a change in the market. One of the agents in my office commented that property values in Northern Virginia have dropped about 10%. She based her opinion on list prices, not sold properties, as many of the properties listed in the past few months are still for sale.

A homeowner recently asked me why the market has changed. In the spring we had a shortage of inventory, creating a seller's market. Now we have a glut. Price reductions are rampant as homeowners who must sell lower their asking prices in hopes of attracting an offer. So why aren't buyers offering?

At the end of October, I attended the National Association of Realtors(r) convention in San Francisco where I had the opportunity to hear Malcolm Gladwell, bestselling author of The Tipping Point and Blink. In his presentation on first impressions in real estate transactions, he talked about an instinctive decision-making process which, when it comes to buying houses, many of us know.

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