Real Estate Authority Blog

As I meet buyers and sellers in my travels around the area, I am faced with these typical questions "Has the market hit bottom yet? "Is this a good time to buy?  "Should I wait to sell when the market improves?"  Here is my take on the local market situation. 

Sales in 2009 were off the charts. Unit sales in 2009 were double what they were in 2008 and 37% above the peak in 2005!  In 2009 over 65% of our sales were from foreclosures or short sales. Unit sales were up dramatically in the 1st quarter of 2010.  There were 5,266 properties sold in the 1st quarter of 2010 compared to 4.379 in the 1st quarter of 2009. 

And we are back to 2001 price levels.  In 2005 the median selling price was $255,000.  That dropped to $145,000 in 2008 and just $85,000 in 2009.  We are seeing a rebound however.  First quarter 2010 median selling prices were $89,000 compared to $87,800 in 2009. So we may have hit the bottom somewhere in the middle of 2009.

I am seeing the better homes sell faster.  When I say better, I mean view, location and property condition, things that are always important in any market. Some buyers are missing opportunities because of unrealistic expectations.  At current price levels many buyers snapping up the best properties at unheard of prices.  So if it looks good to you, it probably looks good to someone else.  Just realize that there are some tremendous bargains out there.  These homes can't be built at today's selling prices so when the supply is gone we are bound to see some upward movement in prices.

If you are a seller I would not wait.  The pipeline of foreclosure property is still strong and I do not see significant price appreciation happening for several years and then some slight appreciation at best.  Our government, lenders and appraisers are not going to let the market go crazy anytime soon.  One thing for sure, the market will change.  Interest rates can't get much lower.  Elections are in the works and all that affects local real estate. 

Given the limitations imposed upon investor purchases, it is clear that end user homebuyers are back in the market.  Homebuyers are looking for the buy of a lifetime ... and getting it.  Despite what you read, banks still are lending .... Even if it courtesy of the federal government. 

So are we out of the woods yet?  Not by a long shot, but the signs are encouraging.  Now the question is "If opportunity knocks, will anyone hear it?"  I think so.  Just ask the thousands of buyers who purchased last month.