Stewart Penn wrote the below post - and I agree totally with him. I think the market is turning around since I see more people at the malls spending money, restaurants are packed with people most afternoons & especially the weekends. Our area still has foreclosures and short sales galore - but existing home sales have improved since this winter.
Anyone that's read my blog will know I'm a Contrarian when analyzing markets, be it the Stock Market or The Real Estate Market.
While many people are still discussing a further deterioration in the National Real Estate Market due to continuing forecloses and the "Banks Shadow Inventory" (that may or may not really exist), I'm wondering if the "churning" we're currently witnessing might actually be indicating that we've reached the bottom and are preparing for the long and gradual stabilization and eventual improvement of the market.
This week alone I've had three Sellers call me worried that the market will drop even further. They're prepared to sell now, even at a loss, to avoid further losses from a further decline in prices.
This thinking reflects the continuing fear being experienced by homeowners.
But as with all markets, no-one rings a bell when we've hit the lowest point and often many people are caught on the wrong side of the market, buying or selling at the precisely wrong time.
The "Smart Money" is made by those who don't allow fear and greed to dominate their decision making.
Obviously trying to time the market isn't a good idea (and most people lose out by doing this).
Rather, people should be buying or selling Real Estate for good well thought out reasons.
Simple day-to-day observations make me think that the economy is starting to pick up: Stores and restaurants seem busier, parking lots at malls seem fuller and the number of store-fronts with "To Lease" signs appear to be diminishing,
Economists will tell us what's happening after the fact - that's how they work .... and while I'm not saying I see the market suddenly roaring ahead, I think the downside is very limited.