Will the Busy Real Estate Market Last?
Yesterday I had a quick cup of coffee with Glenn Kelman, president and CEO of Redfin, an online real estate brokerage, and Karen Krupsaw, the company's manager of the DC-area market. And while they said business is way, way up this spring ("our best May and June ever," according to Kelman) he expressed some concern about whether it would stay that way going into fall.
"I'm worried that a lot of inventory is going to hit," Kelman said. He added that lenders are so overwhelmed with refinance applications and the processing of their foreclosed inventory that some have had to delay foreclosures and evictions. He said he wonders about the potential for further job losses and a surge in the supply of listings. "Some of this strong demand could go away just as the foreclosure wave hits the market," he said.
But he stressed that many of the people working for him strongly disagree. They're telling him they're incredibly busy with serious buyers. Krupsaw is among those more optimistic than her boss. She said that in the entire DC area, the number of listings on the market has gone down, and a lot of listings draw multiple offers. And those sales prices will favorably affect the appraisals of other homes when they come to market. Krupsaw said things are particularly strong in the District, Arlington and Alexandria.
The last word from Kelman: "I've been in this business long enough to say I can't call it."
How would you call it? Will there be a flood of foreclosure inventory
hitting the market later this year? Will demand taper off?
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