But the end to this ride is right around the next turn

When we look back at the past 18 months, we see one common thread-falling home prices. But we also see inventories rise and fall, and with them the prices are fluctuating as well. Now we are seeing an upturn of sales but the prices are dropping again. What is the cause?

Not enough houses being sold in the same neighborhoods to keep the comparable pricing sustained. When one house sells for $100,000 and another across the street sells for $105,000, the trend is for an increasing sale price. This isn’t happening right now. Short sales and foreclosures are keeping the median pricing lower than it could be.

Many builders are also adding to the issue with market-driven lower prices as well. When all of the 3-bedroom houses in any given community sell for the same price, the prices never increase. Add to this the fact that fewer people are as trusting of real estate as they were 2 years ago, and we have lower prices. Builders are doing there best to sell off their inventories so they can be liquid, or simply be able to borrow more money from their lenders.

But what we aren’t seeing right now is what really lies ahead. The market is gaining strength, much like a baby does, a little at a time. But the amount of strength and the time it takes to get back going are uncertain. Many analysts and professionals say it could be late 2010 before the recession is truly done. I think in some cases, that is feasible. But it will differ from market to market.

Los Angeles and Tampa Bay will see 2 very different results from the ‘end of the recession’. Los Angeles is a market that is fragile by itself without having falling prices thrown into the mix. Tampa Bay’s real estate sector will recover quicker because of the prices themselves beginning lower anyway. As long as the trend to sell more properties continues, both markets will emerge better and stronger.

These are just 2 examples of what the housing slump has done to each and every market. There aren’t many cities or towns that have been insulated from this crisis. But in each case, the professionals pull together and help to shore up the local landscape as it were to keep each other viable. The strong will survive this recession. The real estate market is no place for the weak at heart anyhow.

Regardless of how many more times the market rises and falls and rises and falls, one thing is for certain…the stability will be back and it will be better. Fair prices and closer scrutiny of the buyers and sellers will be of the utmost importance. Ethical business practices and better trained professionals will result in a better overall experience for all parties concerned.

The bottom line in this up and down market is fundamentally simple. Be fair and trustworthy and you will be busier than ever before. Word of mouth will be your best friend. Stay focused and be diligent in all endeavors. And keep a positive attitude at all times. What doesn’t kill you will make you stronger. Better times are on the way.

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