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NorthMarq's Mark Scott

'The anticipation of continued and greater strain will continue to place downward pressure on prices.'

By Alyson Grala | Updated on June 22, 2009

Last week’s GlobeSt.com Quick Poll asked readers if the bid-ask gap is narrowing or a far cry from realistic, with an overwhelming 69% voting for the latter and only 31% throwing their weight behind the former. Mark Scott, senior vice president and co-managing director of NorthMarq New Jersey’s office sides with the majority.

The bid-ask spread continues wide and will not converge until prices decrease much further. The anticipation of continued and greater strain will continue to place downward pressure on prices. Any asset brought to market today is under some type of stress. Buyers sense this. Sellers today are either: a) bringing to market underperforming assets draining their pocketbooks, b) anticipating far further future declines in values, c) desperate to raise cash, or d) eager to rebalance their portfolios into an asset class other than real estate.

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