As we start a new year it is good to review and look back to see if we can learn from the past. So much of the news lately is on the Housing Market and the difficulties that sellers are having through the erosion of prices. Buyers are waiting for the lowest point in the market to buy. Sellers are looking at prices that were higher a year ago to set prices for today.
In some markets we have seen the average price go down while in others the prices has been stable and even risen. How do you make the right decision in this market? I don't think there is a economist or an "expert" in the business that can say with certainty what the market will do in the short run. I have sold Real estate since 1973 and I have seen almost all the cycles in this business.
One thing remains constant - given enough time, prices will rise and most families want the security of a house that they can call home.
In the chart above, you can see a number of trends. First, there were 61 fewer sales in 2007. Second, the average sales price is $10,000 lower. Each item in the statistics are in the buyers favor except one: that is number of homes on the market. 2006 inventory grew each month and that trend continued through most of 2007 but we have had a recent reduction of properties on the market. As soon as that happens the advantage the buyers had will diminish and we will see prices start to rise and less flexibility from the sellers.
My thoughts are the market has corrected itself and we will see fewer home on the market and prices staying flat to slightly increasing.
Grand Rapids Real Estate is My Real Job
Terry Westbrook's Grand Rapids Real Estate Blog
Copyright by Terry Westbrook 2007
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photo of Jaycee Park by Bonnie Westbrook