It's time to dust off the 'ole crystal ball and see where the real estate market is headed. Several times a week buyers and sellers ask if the market has hit bottom yet. News reports have indicated that we have hit bottom. People tell me we've hit bottom. Many are convinced that it has. And, that may be the case in some parts of the country. But, I'm not completely convinced.
Have we seen signs that our market has bottomed out? And if we're at the bottom, how long will we stay there? Or do we still have a ride till we get to the bottom? The locals have homes they want to sell, but they are competing with the short sales and the foreclosures on the market. So, will these sellers eventually, in time, become among the statistics, a short sale or foreclosure, because they can't sell for what they owe?
In essence will we see the domino effect? 'My neighbor sold his house with a short sale and the new buyer is paying $1000 a month for their $100,000 home. I am next door, with essentially the same house, purchased at the peak of the market for over $200,000, with my $2000 a month payment.' What incentive is there for that owner to stay in place? What will these upcoming short sales and foreclosures do to the market?
I see positive signs in our real estate market. Buying has picked up and we are seeing multiple offers on attractively priced properties. But, there are still signs that the economy is slow. Stores have closed. Restaurants have closed. And, people have been laid off and will continue to be laid off. What will this do the economy? Home prices seem to have stabilized. Our prices are back down to early 2000 prices. They are affordable again, with low interest rates. Buyers are in the market today, scooping up the attractively priced properties. But, some are still waiting.
So crystal ball, don't fail me know, tell me, if you can, what the future holds...
This article is authored by
Sandy Shores Realtor, Melbourne FL Real Estate
Brevard County Real Estate & Investing
Palm Bay Florida Real Estate News
I buy, sell, rent, own and manage Brevard County real estate.
that for you
Sandy, super busy with contracts at Ocean Shores, WA. We feel extremely lucky to live and work in a resort City on the Ocean. Happy agents here! Steven and Marti
This is the time to buy. Folks with money who saved, have jobs, live below their means can buy with rates at phenomenal means. So if you look at it from a buyer's perspective, the market is hot, active and won't be this attractive for long.
We are defnitely pretty busy . . . and I cannot complain. But I am fearful about 2010--when all those 5/1 ARMS are scheduled to adjust. I fear we may be in for another blip.
Can you call me when your crystal ball clears up? Mine appears permanently fogged. We too are seeing the market pick up, if slowly. April had 4 times the closings of Jan, Feb, or March, but is still only a third of the volume of April two years ago.
As my investment manager friend quips 'the market will either go up or down, one way more than the other' :)
Sandy - Here in California there has been a proposal in our legislature the last few days to triple the first time buyer credit. NOW, here's the clicker. . .It's for newly built homes only. I think as long as we continue to build more homes than we need, than we will have a strong component for not emerging quickly from the current housing situation we are in. I don't have a crystal ball, but would say much has to do with what government gods, guided by strong lobby intersts do to either keep us off the right track, or put us back on.
Sandy, Great post and as always, an excellent group of comments...
I think we are bouncing on the bottom right now Sandy. Second half of the year should be the uptick.
Hi Sandy, did your crystal ball answer?? We are seeing an increase in activity- but that is typical for this time of year, and still not as robust as past years. (yet)
Hi Sandy
I'm not sure if there is a crystal ball. The activity has picked up sales have increased; there are multiple contracts on homes. The market indicates that this is a good time to by.
Good luck and success.
Lou Ludwig
Sandy,
I would love a crystal ball....mine is broken.
Ann
Sandy, we are seeing lots of activity and sales, the phones are ringing, mutliple offers and lots of buzz about the bottom being hit. We had the director of the Home Builders speak at our sales meeting yesterday and he said that the last 6 weeks have definitely been on the upturn!!! YAY!
Steven and Marti, Sounds great! We have been very busy also. Keep up the hard work!
Andrew, I think this is a very attractive time for buyers, there's no question about it.
Hi Melissa, All we can do is wait to see what happens. But for now it's a great time to buy.
Hi Tim, I think all of our crystal balls are just not working right now.
Stuart, So true, it will go one way or the other. We shall see.
Hi Myrl, Oh, boy, here we need an incentive to move the resales off the market. Our builders here have been offering great incentives, and quickly moving properties off the market.
Hi Paul, Thanks for the kudos and thanks for always stopping by for a visit.
Hi Gary, It will be interesting to see what happens.
Hi Lou, Our Florida Market has indicated that this is a great time to buy!
Hi Ann, Mine seems to be a bit on the foggy side these days too.
Caren, Don't you love it! The phones are ringing and we are also seeing multiple offers! I hope that the Home Builders director is right! Sounds great!
Sandy,
Yes, foggy... Mine was dropped a while back.
Ann