Tuesday, September 04, 2007

Preliminary August Sales Stats

No surprising changes for sales stats in August. I'm showing 1,510 sales for the 4-county area. This is about a 27% drop from this time last year. Normally, August is a rebound month over July, but not this time. Typically, September starts the downward trend for sales that lasts until February, but it looks like we've reached that point a month earlier this year.

8 comments :

Rob Dawg said...

It is Aug '05 that interests me; 3436 vs Aug '07 1510. Add in approx 10% sales weighted price declines and thinner margins and the Real Estate Industry is seeing 1/3rd the revenue they saw in '05. I don't care how many casual agents go back to Mary Kay the core has got to be collapsing.

Was I wrong to think they were drinking their own kool-aid? Were they instead putting away piles of cash to survive the tough times?

AgentBubble said...

Rob Dawg said...
Were they instead putting away piles of cash to survive the tough times?


I'd bet less than 1% had the foresight to do that. Back during the boom, you'd be surprised (or maybe not) at how many agents had fancy BMW's or Mercedes cars and were only selling a house every couple months. I would make it a point to look up any agent I was about to enter a transaction with and see how long they were in business and how many deals they had done. More often than not, it was a newbie and you could just tell they jumped on the real estate bandwagon. My how times have changed.

Real said...

More often than not, it was a newbie and you could just tell they jumped on the real estate bandwagon.

I agree with that. I would also say most of the agents (even those with experience) were not very good. Most sellers were 'move up' buyers so they didn't care if they got top dollar as they needed to close escrow to get into their next house. Case in point are the top agents in Gold River. I don't think any of them were very good as the comps are all over the board but tend to be much lower for the top agents by volume. I think one top agent at REMAX is particularly clueless when it comes to looking out for the seller's best interest. As a result, I think the downturn is good as it flushes out some of the marginal real estate peddlers. Not that I dislike Realtors(TM), but I place them on par with used car salesman or auto repair specialists when it comes to honesty and integrity.

mopar777 said...

It's always seemed to me that many real estate agents are attractive women looking to land on their feet after jumping out of a marriage.

smf said...

"Were they instead putting away piles of cash to survive the tough times?"

They tried doing that as well by purchasing 'investment' homes.

*snicker*

"I don't think any of them were very good as the comps are all over the board but tend to be much lower for the top agents by volume."

The comps certainly are. And Re/Max of GR seems to have the bulk of the listings there.

wannabuy said...

Rob Dawg said:
"the Real Estate Industry is seeing 1/3rd the revenue they saw in '05. ".
Ouch. If that hasn't already shown up in commercial rental stats, it will soon.

While Sacramento is taking it harder than most areas... OUCH!

" Was I wrong to think they were drinking their own kool-aid? "

Oh no, they bought more flips! ;)
Its not wise to eat one's seed corn.

or to quote SMF
" *snicker*

Got popcorn?
Neil

Max said...

Don't get high on your own supply. I think I saw that in a movie once... :)

Thanks again for posting this AB. The Bee has only posted individual sales data through June 20... why is it that the fewer sales there are, the longer it takes the Bee to publish? One of life's mysteries I guess. :)

Real said...

The comps certainly are. And Re/Max of GR seems to have the bulk of the listings there.

I am sure that some of the agents there are quality. There is one in particular (which I would bet is one of the highest volume) that basically just tried to churn the market as much as possible - I am sure sellers missed out on tons of money as a result. Rather than have sellers notice this, they probably react the opposite and go to her because she can 'close the deal'...