Are we there yet, have We Reached the Bottom?
Middle of September, 2009 – More and more “experts,” including some of the more conservative voices, are pointing to encouraging signs that we may have reached the bottom of the greatest Real Estate decline we don't even feel comfortable to fully acknowledge.
The sales are up, we are neck in neck with 2005 in number of sales, except that the property value is at the other end of the spectrum now. And what does that mean to you?
If you are a Second Home Buyer, it means that there are some incredible opportunities available. If you are a First Time buyer or someone who hasn’t owned a home in the past 3 years, there is a clock ticking to beat the November 30th deadline for the $8,000 tax credit. If you are a Long Term Investor, a discerning investment could be a very smart move. If you are a Move-Up Buyer, there are also many opportunities for you to benefit including still low interest rates.
As a Seller, reaching the bottom may be comforting to some level but not nearly as exciting as the opportunities of a Buyer.
Reaching the bottom does not mean a return to “normalcy”. Our market is still very volatile and price driven. While the bottom of the market is experiencing a lot of activity, appraisal reform regulations are still moderating any price increases. And while inventories overall have dropped dramatically, the higher the sales price, the lower the demand.
If you are a seller, the number one thing to remember is that buyers are looking for a great value and the competition is fierce.
Some Sellers may believe that reaching the bottom means that if they wait, they may be able to sell their home for more. That’s true. But the wait might be in terms of years and not months. The “experts” are not predicting a bump off the bottom, but rather a bumpy bottom. If you need to sell, acknowledge the realities of the market and price your home as if you were a buyer.
When you or anyone you know needs real estate advice, please let me know. I can share information on market opportunities and realities specific to you and your situation. I’d like to help.
Lucia Arbaugh, Realtor®, ABR®, e-PRO®
Coldwell Banker Residential Brokerage
7231 E Princess Blvd Suite 100, Scottsdale, AZ 85255
