Our Market Has Bottomed!

Tuesday, June 16, 2009

The real estate market has been a roller coaster ride downward for the past 6 months but we are finally leveling off in price declines and inventory is selling. The past 5 weeks or so have seen an unprecedented increase in number of properties going under agreement (Pending Sales). I'm not talking about foreclosures or short sales, which have sold in large number during the past year, but summer vacation homes are now selling and even some regular, solid, "family" homes are going under agreement. It means that buyers, who had put their lives on hold for so long after the Wall Street financial collapses, are now getting on with the business of living. People are buying properties that fit their needs--whether bigger or smaller--near the water--or moving to condominiums. We, as a country, are getting used to the "doom" and "gloom" rhetoric and learning to cope with lower expectations, but still moving on with major decisions--like buying a home. There is a $8000 first time buyer tax credit that must be used before December 1, 2009, and mortgage rates, although still low, are beginning to climb with the increase in the cost of oil. With declining inventories, homes will sell in fewer "days on the market," and prices will stabilize. Smart sellers know that they should maintain their homes in excellent condition to sell in this market or they will be passed over or called upon to give credits to the buyer after home inspections. At least our local real estate market is now dynamic -no longer stagnant, and sellers who want and need to sell, will have a chance at a fair deal. Pricing is still key. Don't over-price your home or it will sit, and it will be passed over. Use a professional real estate broker to carefully give you the latest comparables for your neighborhood---not from 3 years ago, but for the past 3 months, if possible.