I was working out this morning on the treadmill and travel company ad came on the television that said the above phrase.  I knew exactly what was going on – they have bought these trips and have not had anyone purchase them, so in order to get more people to take the trips they reduce the price by 55%.

This time of year we always see sales at department stores advertising 75% off.  They have excess inventory that they are trying to move.

This is a common occurrence in the automobile industry – when sales are slow you reduce price in order to try and motivate sales.  There are a lot of people that won’t pay “x” but if you reduce the price, they will pay “y” because they feel like they are getting a better deal.

To some degree, that is kind of what is going on in our real estate market.  Any time you have excess inventory, you have to try and make deals to get people to take the inventory.  That is why now is such a great time to buy – we have so many sellers who have adjusted their price to try and be competitive with the present market.  You always have someone willing to sell more than you, and that is the seller who will sell for the least amount. 

Is this good for the real estate market?  It really doesn’t matter.  It is not what is good or bad, it’s just the way things are.  In the real world, when you have excess inventory or any commodity, someone is going to reduce their price to sell their products and that is what we are seeing now which is why NOW is a great time to buy!