Looks like more folks are "battening down the hatches" as Zillow's Barton said. Here are some excerpts from Seattle real estate startups regarding their cut backs. I have to say I hope these companies make it through the rough patch. Redfin's MLS search is one of my favorites and Zillow is always fun to check out from time to time.
The unprecedented economic events that are playing out on a global stage began in our own industry and have made a prolonged recession likely, in our judgment. We are a young company that is not yet making a profit. Despite having sizeable cash reserves, we deemed the responsible course was to meaningfully reduce expenses, so that Zillow emerges from the other side of the recession in a very strong position, even if the recession lasts many years.
Even a month ago, we were raising 2009 revenue projections. All our markets, now including Chicago, contributed profits. But the past few weeks have seen a major reversal. As the stock market wiped out prospective down-payments, tours and offers dropped 30%. Transactions that were done came undone. October will still be pretty good, then we’re headed for a big dip.
For what it's worth, I remain hopeful things will turn around in the new year. I know a number of my clients are pondering if January is the right time to make a purchase. A few are waiting for after the election to decide on what to do. It remains to be seen if the news will get better, worse, or stay the same leading up to the new year.
Yeah, I would definitely call that a bad month. Unfortunately, though, it is going to get even worse. A lot of people are speculating the election (contingent Obama wins) will bring with it a new economy and everything will fix itself in a relatively short time. The problem, however, is a global economic meltdown. So, this is well out of the reach of any one man or administration fixing. Believe it or not, the TRUE economy is much worse than what even we see today. The current administration is doing its best to “keep it together” until after the elections are finished, meaning we are currently experiencing an artificially BETTER economy than what it actually is. So, my prediction is that after the new year begins, we are going to witness even more layoffs across the board with a significant reduction in home values following a few months later. This isn’t a “hick up” as most people in the real estate business would want prospective buyers to think. Its going to take a few years to recover.
Do you go around all day copying and pasting that same post?
It was also cross-posted to/from urbnlivn.com
Then again, many posts on all 3 blogs are becoming so similar that perhaps that’s the point MD is trying to make by cross-posting.
Actually, I wrote and posted it on urbnlivn.com first. Then, I cut and pasted/posted it to seattlecondoreview.com. Lastly, I cut and pasted/posted it to seattlecondosandlofts.com
I hope that clears up the confusion! 🙂
Since topics of discussion on the sites were similar, discussing the past month, I just wanted to clear up any confusion that this is going to last a while – not clear up in a few months. Take care!
Also, just as an FYI, I consistently use the same handle on each site when I make posts. Why don’t you do the same, “MD the Parrot?” Hiding something?
Guys, the point here is that “The MD” is SPOT ON! you can bicker back and forth about “EEww…you blogged on another site…..oooh, you must be bad because you copy your post…” SO WHAT! Look at the information in his post. Who cares if it is plastered all over the walls of the bathroom…if more people would listen to him they would understand what is going on here, and stop waisting time trying to get people in Seattle to digest the information in a way that would benefit people who NEED to sell houses! Okay, i got that off my chest…now i have to go look for a job!