There is so much information available in the media regarding the real estate market. Its very difficult to open the paper or turn on the local or network news and not receive some information regarding the housing market. What is so fascinating is how the data is being interpreted. How the information is being digested depends on one thing. Are you a buyer or a seller?

People may tend to view and absorb information from a single perspective. How does it impact them and what does it mean for their current situation. Suffice it to say that if you are not currently in the housing market, meaning you are not looking to buy or sell, you may not be concerned if prices are rising or falling. You are probably more concerned with the price of gasoline since this impacts your budget and you have to deal with it everyday, than you are if home prices are down 10%.

Market Momentum Has Shifted

However, if your intention is to buy or sell property, chances are you have a much different perspective than your counterpart on the other side of the welcome mat at the front door. Home buyers recognize that the momentum has shifted. They can be more patient, more demanding and more selective in their approach to buying a home. If they can’t come to an agreement with a seller who is willing to meet them or their terms, they can go somewhere else. There are plenty of homes for sale and apparently only a few buyers willing to make offers.

Home sellers on the other hand are convinced they are the exception. Despite the negative news being reported it somehow doesn’t apply to them. Convinced that someone looking at their property will see its meticulous care and amenities, they will pay more and will do so quickly.

Market Specifics, Not Generalizations

In an up or down market, one thing is generally consistent, quality properties will usually maintain their value and are less likely to experience wild market swings in value. So the price declines we are reading about in Riverside County are probably not applicable here in Pasadena. Many of the neighborhoods in Pasadena while certainly not gaining in value have experienced very little price deterioration. Sometimes buyers are surprised that sellers do not seem eager to accept an offer that is 5-7% below the asking price. In a market where there seems to be little consensus, it can be hard to find acceptable territory on which folks can agree.

In a slower market it is harder to determine the value of a property. A seller’s motivation becomes a much more tangible ingredient especially if reinforced by financial obligations. Buyers seem to be basing many of their offers on the premise that today’s sellers are much more motivated and are therefore much more likely to accept an offer that may be below what the area may indicate that it is worth. If patience and time are on your side, then finding that special motivation may be worth waiting for.

I don’t think anyone would argue that the pendulum has swung and it is now a buyer’s market. Although sellers had the ball for 5-6 years, some of them are just very reluctant to give it up.