I just read an article that brought up an interesting thought. According to a recent study done by CoreLogic, foreclosure homes should start flooding the market during the last quarter of the year. They say that this could DOUBLE the average time it takes for homes to sell. Right now the average time residential homes are on the market is 11 months. Can you imagine nearly 2 years before selling the AVERAGE home?
If the market really got this bad, I wonder if real estate agents would start declining listings. With the way the real estate industry works, real estate agents don't make money unless the home actually sells. Having an overpriced, unsellable listing is only a cost. They still have to pay for advertising, filling flyer boxes, etc.
Most listing agreements are for six month terms. If only a select few houses actually sell within the first six months of listing, then real estate agents will be wasting their time with most listings.
While there will always be the desperate and new agents willing to do anything to get their name out there, I think we will begin to see the top agents decline listing homes unless the seller is reasonable and will price their home at a sell able point. It will be interesting to see what happens for the future real estate market.
Because foreclosures in Logan Utah have been low, we hopefully won't see double the time homes are on the market. Hopefully the Logan Utah Real Estate market can avoid this possible catastrophe.
The future for areas like Arizona, Nevada, California and Florida Real Estate could be substantially bleaker if the number of foreclosure homes really floods the market.