The Recession, Most Would Say, Is Already Being Felt : In Real Estate, Sellers Taking Big Price Cuts

Therese Marcus, a real estate agent with Prudential California Realty in Sherman Oaks, was the top performer in her office last year. As recently as June, she expected her 1990 sales volume to match that of 1989. But Marcus said the economy seems to have taken a turn for the worse in the past few months. Even though she’s spending more time and money marketing properties, she now expects to finish the year about 30% below last year’s gross.

“I think it’s an uncertainty and uneasiness. There’s the Middle East crisis, and people have been pounded over the head with budget problems and the idea that we’re going into a recession.

“There’s no question in my mind that real estate is already in a recession. I sense it more in the last six weeks than anything else. I have $7 million of inventory on the market. But I’m not getting calls. I’m not having showings.

“I have seven houses on the market. I get offers for 15% to 30% below the asking price. If you really want to move your property, you’re taking big cuts in what you’re asking.

“I put a property on the market on Labor Day of last year for $509,000. From September to December we had four offers, all between $450,000 and $485,000, all rejected by the seller. That property is still on the market today, 13 months later, and it’s down to $489,000. I can give you dozens of cases like that.

“I’m probably having a very good year compared to other people.”