Tales of a Seasoned Broker
The Wall Street Journal recently wrote about national real estate companies like eXp Realty(NASDAQ EXPI) and Compass Realty (NYSE COMP) who have experienced what anyone would call a market crash with both of their shares losing close to 70% of their value in just the last 12 months. Could this staggering loss in some way foreshadow what investors think will soon occur in the real estate market, as a whole, and the value of the homes we live in?
A breakdown of the numbers in our local Bergen County market would indicate that the value of our individual homes is still quite strong and the fluctuations seen currently in the market (and the value of brokerage stocks) stem from a decrease in the rate of volume and activity, but not from any loss in value. While the number of homes sold continues to decrease along with the number of new homes hitting the market, listing prices are not seeing any signs of relief as sellers continue to gauge demand from those people anxious to buy which confirms the seller’s assumption that the market has not shifted from their favor. For the time being our home values remain stable!