Market Update:
It is 2010 and many are glad that 2009 is a fading a memory. To call it an interesting year would be an understatement. Since last year we have been preaching that the market had “bottomed out” and that we were beginning the slow, steady climb back up. We stand by those beliefs and barring any unexpected world or economic catastrophes you can look to a better year for the housing market in 2010.
They say a picture is worth a thousand words. Often a graph is even better. Below is a graph (information courtesy of The Cromford Report) showing housing statistics for the past three years at the beginning of January which perfectly illustrates our point.
It is 2010 and many are glad that 2009 is a fading a memory. To call it an interesting year would be an understatement. Since last year we have been preaching that the market had “bottomed out” and that we were beginning the slow, steady climb back up. We stand by those beliefs and barring any unexpected world or economic catastrophes you can look to a better year for the housing market in 2010.
They say a picture is worth a thousand words. Often a graph is even better. Below is a graph (information courtesy of The Cromford Report) showing housing statistics for the past three years at the beginning of January which perfectly illustrates our point.
The length of time between the writing of the contract and actual closing is why Pending and AWC have ballooned. The time needed for lender or bank approval is unpredictable, sometimes interminably long and many of these deals will fall out of escrow and turn into REO properties.
What does it mean? For the traditional seller you need to be as competitive as possible so your property sells before the REO’s get reintroduced to the market and temporarily reduce values again.
As a buyer make certain you have the time and patience if you’re going to buy in the short sale/foreclosure market. Also, take a close look at “traditional” listings because as sellers become more competitive the difference in price might be a much better value once all is said and done.
Positive trends include: Inventory going down, # of sales going up and depreciation of our properties is grinding to a halt. On the negative side, the depreciation over the past few years has dramatically affected the square footage sales price for our properties.
For 2010, just buckle in and be ready for a slow, yet positive year. Cash will be king for the next couple of years. There has never been better value in our market. If you want to downsize or upsize and have enough equity in your current property to walk away with cash, you will be able to buy a much greater value home.
Now, don’t shoot the messenger, but please consider this advice. The value of your home is truly, truly less than it was a few years ago. For many it is less than what you purchased it for. With all the short sales and foreclosures, it is becoming more and more difficult to ascertain property value. Many contracts are falling apart because homes are not appraising for the offered price. If your home is currently listed or you are thinking of listing it have it appraised so you will truly know what the value of your home is in today’s marketplace.
What does it mean? For the traditional seller you need to be as competitive as possible so your property sells before the REO’s get reintroduced to the market and temporarily reduce values again.
As a buyer make certain you have the time and patience if you’re going to buy in the short sale/foreclosure market. Also, take a close look at “traditional” listings because as sellers become more competitive the difference in price might be a much better value once all is said and done.
Positive trends include: Inventory going down, # of sales going up and depreciation of our properties is grinding to a halt. On the negative side, the depreciation over the past few years has dramatically affected the square footage sales price for our properties.
For 2010, just buckle in and be ready for a slow, yet positive year. Cash will be king for the next couple of years. There has never been better value in our market. If you want to downsize or upsize and have enough equity in your current property to walk away with cash, you will be able to buy a much greater value home.
Now, don’t shoot the messenger, but please consider this advice. The value of your home is truly, truly less than it was a few years ago. For many it is less than what you purchased it for. With all the short sales and foreclosures, it is becoming more and more difficult to ascertain property value. Many contracts are falling apart because homes are not appraising for the offered price. If your home is currently listed or you are thinking of listing it have it appraised so you will truly know what the value of your home is in today’s marketplace.
