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THE BULLS AND THE BEARS

The “bulls and the bears” is terminology used by financial market participants. Often, the “bulls and/or bears” is used to imply that some people are on the rising side of the market and other people are on the falling side of the market. A bull market is a rallying market which is what we had for a long time in real estate. A bear market is a declining market.

Cramer of TV notoriety has a standard introduction:  “there’s always a bull market somewhere….”  Occasionally, people on either side of the market refuse to take profits. They stubbornly maintain their position and watch profits dissipate as the market rotates.

There’s an analogy between Wall Street and the housing market. Some buyers (“the bears”) bid ridiculously low – this almost never works nowadays even though the rally in real estate prices has ceased (at least temporarily). The rally is over (for now) but the market is stable with low inventory levels.  The “bears” usually end up buying a house which is not their first choice. They usually lose the first choice because they bid too low– or, they don’t buy anything.

Some sellers ask too much (“the bulls”) and refuse to adjust the price. They waste time and are often sorry because the property remains on the market longer. This may make the property less valuable and/or costs money (taxes, insurance, etc.) The proper way to price a house is use of a comparable market analysis and a good broker. Call me. Love, Robin.

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