Slow sales continue in the area although there has been increase in activity in the past few months. Sellers, after going through the painful process of resetting their expectations of selling their homes at the previous equity growth levels, have lowered prices rather dramatically. You see the results of this in media reports about falling average home sale prices. You might think this would result in an increase in sales however, buyers are being told that they should only pay a fraction of the asking price because values have dropped. The result of this is a "double dip" effect, asking sellers to discount their already discounted price and a crisis of expectation. When the media realizes that sellers have reset there expectations, perhaps we will see more reasonable dialog between sellers and buyers. Keep in mind that most buyers are sellers as well so they should expect heavy negations on both sides.
The net of this unstable buyer/seller expectation a freezing of sales transactions. Buyers will not purchase because they think sellers are being unreasonable and sellers won't (or can't) sell because the price is below what they paid. This will eventually even out as pent up demand for buying and necessity selling by home owners, meet a common ground. At that time a new "normal" market will be established and home sales and prices will be much more predictable. Missing from this equation will be the frenzied investment buying spawned by the outlandishly low interest rates and easy loan practices of the past few years.
Notwithstanding, there are still opportunities for the informed buyer and seller. As a seller, if you are selling and buying in the same market or moving to an area where values are typically higher, the present time may be as good as any. Although you may get less that you wanted for your home sale, you will pay less for your new home. If you choose wisely, you can even come out ahead. If you are selling to "cash out", or moving to an area where values are lower, it may be wise to wait a while. Buyers on the other hand will find some good bargains, some well below the projected price decreases of next year. Remember, no one knows when the market will bottom out, some think it already has. If you want a house, and have the means to buy one, take a good look now. If there are 25% fewer homes being sold today, then 75% are still selling. Be part of the 75%.
About Gary Mullinix:
As an experienced Real Estate agent since 1998, I am well qualified in guiding you through the process of buying or selling your home. My goal is to provide the best possible service and ensure satisfaction when you sell or puchase property . I believe in using my experience in finance, contracts, negotiating, and marketing to your best advantage.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
