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
I buy, sell, rent, own and manage Brevard County real estate.