One of the biggest questions every buyer and seller wants to know is, Where's the bottom? Finding the bottom in any real estate is extremely hard to predict. One of the reasons is lag time in data reporting, by the time the media reports that the market has bottomed out it is usually 3 months have past. So we are stuck with trying to predict the bottom.
In the last 3 years we have hit several false flats, where prices stabilize or even rise for a short period of time, only to start to move downward again. What most want to know is when we will truly stabilize for good and even see true appreciation.
When a buyer start to think about buying a home they go through 3 stages. In stage 1 they get curious and start peeking at homes on the internet, driving through some neighborhoods and thinking of when buying may be a possibility?
In Stage 2 that curiosity turns into maybe we should look at a couple of properties. While it is a move towards home ownership, it is a timid one.
It is in Stage 3 where they start to seriously look, get fully qualified for a loan and really get down to researching neighborhoods, school or whatever else is important to their home search. This is when homeownership becomes a reality.
For the last 4 months we have seen a lot buyers in Stage 1, some buyers in Stage 2 but very few in Stage 3. Well that is changing, for the last 2 weeks we have seen more buyers step up to Stage 2 and the former Stage 2 buyers are now Stage 3 buyers.
What does that mean, contract to purchase. Yup, buyers are making offers. Post Election bump? Maybe, but whatever it is my sellers are very happy.
Have you been waiting for a bottom? Well this just might be it. But if it is, you won't hear about it in the media for 3 months and then it may be too late.
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