For the past few months I have heard on almost a daily basis the following questions: "When is the real estate market going to bounce back?", "Has the market hit bottom yet?" and "When is a good time to buy before home prices go back up?".
All of these are valid questions, even if there is no 'real' and 'true' answer to be given. To be honest, by the time people realize that the market is 'coming back', most of the best deals will be long gone while they waited for prices to hit rock bottom. The only way to really 'fix' the real estate market and for it to bounce back is for homes to be bought and sold causing the inventory of homes available on the market to lessen. It is the age-old business principle of supply and demand.
As we have noticed in the past year the supply of houses for sale has dramatically increased. Included in that increase is a vast amount of foreclosure and distressed property. These under value properties have a negative affect on the value of homes because they sell under market value. The market value however is determined by how much comparable houses are selling for in a particular market or geographic area, and the more foreclosures in an area, the less properties in that neighborhood will be valued at. Once the amount of foreclosure and distressed properties on the market is back to a 'normal' or a sustainable level, we will begin to see home prices and values rise again.
So how can you help 'turn' the market around? Buy a house, or help a customer or client find the home of their dreams. NOW, in my opinion, is a better time than ever to buy a home if you have the cash or are credit worthy. There are MANY great properties in desireable areas that have finally become more affordable due to the market downturn. You can now get 'more house for your money' than you could in the last 3 years, but it is not going to stay that way forever. There is still great financing options and favorable rates available. There are many first time buyer as well as down payment assistance programs available to further help buyers realize their dream of homeownership.
Just like any other market, the real estate market will come back, it is only a matter of time. So are you going to sit on the sidelines and wait for opportunity to pass you by? Or are you going to be part of the change and get in while the selection of homes is great, mortgage rates are still favorable, and home prices are affordable? You can be part of the change!
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