November 17, 2009
Swing high, swing low, sweet housing market...
Overall, the housing market is showing significant signs of recovery, according to statistics reported by the National Association of Realtors (NAR). Although most states showed increases in existing home sales for the third quarter in 2009, many were still registering double-digit losses, proving how diverse the market can be. When buying and selling, study your local market. If you have many properties selling in foreclosure, this will affect everyone’s home values. If you’re in an area with high unemployment, this will also affect everyone’s home values. If you’re in a resort-driven area with many high end second homes, you’ve probably had significant declines in existing home sales. I live in a resort-destination town on a beautiful lake, and we’ve seen our vacation home sales (especially those between $500,000 and $1,000,000) stagnate over the last two years. While the first time homebuyer’s tax credit is the main reason for increased sales in most areas, it doesn’t help the vacation home market.
Along with declining home sales, most areas have also seen dramatic decreases in home prices and value. While NAR reported that 123 out of 153 metropolitan statistical locations reported lower median home prices (compared to third quarter of 2008), 30 locations reported price gains. Most people are waiting for the elusive “bottom” of the market to buy; the Catch 22 is that until people start buying again, prices will probably continue to deflate and evade a “bottom.” The best advice I’ve heard on determining the market bottom is that you’ll know it when you see it in the rear view mirror, and then it’s too late!
Logical reasoning leads us back to studying and knowing our own market direction, influences, and inventory. Based on area comparables, if a home looks to be a good value, you like it, and you qualify for a well-priced loan package….it’s time to buy! Click here
for more information and regional statistics on the 3rd quarter from NAR.
Posted by:
Julie Sarton
Tagged With:
first time home buyers,
home buyers tax credit,
national association of realtors
and real estate market
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