Is this a reality or a myth circulated by interest groups to draw in suckers?
I am reluctantly looking for a house. So, my agent (pretty decent guy) sends this to me (we had a prior talk on low inventory):
"...... Friendly warning:the prices will increase sharp and will see crazy market in very short time. ...."
"...By accident I watched a local evening news. They have actually talked about housing inventory statistics in WA state (you mentioned this to me earlier). According to them, inventory is down 13% comparing to January of 2003. They talked about it very seriously... Well, to me fluctuation of such magnitude does not seem to be a significant number, especially when in low interest environment...."
What do you think?
Sounds like it is already priced into the market. Look at building starts for your area.
My experience with Realtors, even those who are friends, is that they are motivated to get one to act. They implore the buyer to buy now because of this or that and implore the seller to lower their price too quickly if someone isn't right there to buy it now.
They have a mind set that they have to limit the amount of time spent with each seller and buyer so they can go on to the next or have time to concentrate on prospecting in order to increase their income. So their motivation is to do what it takes to get a contract signed as soon as possible.