I'm often asked when I think the real estate recovery will happen.  Buyers ansd sellers alike asking, "when will we hit the bottom?"  I know it's rude to answer a question with a question, but my response is always the same, "do you want to buy or sell right now?" 

If the answer is "yes", then it doesn't really matter when the market actually "bottoms out" because the buyer or seller has an immediate need.  If the answer is "no", then I can conservatively prognosticate and often find myself telling the inquierer that we should see nationwide stability within 8 to 10 years.  Of course, locally, we are fairly stable, and have always been, we've just seen less activity due to instability across the nation.

A recent quip from Realtor Magazine accurately summarizes one aspect of why our national recovery will be delayed and why there is no sense of urgency for buyers to get off of the sidelines, despite low interest rates and home prices.  I have attached a link to the article below.

Real estate can no longer be viewed as an "appreciating asset."  While it can still be considered so in certain areas (and we all know how real estate is a local thing), in many towns and neighborhoods across the country, it will take a decade or two to fully understand the effects of the recession and the declining prices left in the wake of the neighborhoods littered with empty houses.

 

http://realtormag.realtor.org/daily-news/2011/12/22/foreclosures-may-stall-housing-recovery

 

4 Comments on When Will We Hit The Bottom?

DEC
27
2011
177,613 Points 2 Featured Posts

We will know when we have hit a bottom 9 months after it happens. Markets are what markets are.
8:09am • #1
1,442,095 Points 26 Featured Posts Outside Blog Called Shot Master

Smart home buyers are taking advantage of the current opportunities.  The selection is very large, the prices are very attractive and the mortgage interest rates are at record low levels.  Many may not see a better combination in their lifetimes.

Happy Holidays!  Happy New Year!

 

Longwood Gardens IMG_2154

 

Photograph by Roy Kelley using a Canon PowerShot G11 camera.

Roy and Dolores Kelley Photographs
8:58am • #2
494,120 Points 29 Featured Posts Outside Blog Called Shot Master

You are giving good advice. When someone is buying a home for their specific shelter needs, at a price and monthly payment they can afford, they are buying a home at the right time.
9:07am • #3
DEC
29
2011
468,906 Points

Hello John..,.you make good points in your post.  Even Buyers who are concerned about prices dropping a bit more should see their purchase as a long term investment which will eventually increase in value!!
5:55pm • #4


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John Davison (Raleigh-Cary-Triangle NC)

Cary, NC

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Coldwell Banker

Address: 301 S.E. Maynard Road, Cary, NC, 27511

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