Real Estate is and always has been "Cyclical". For those of us in Real Estate 1 or more years we have all realized the Cycle down. The GOOD NEWS is that we are anticipating the turn around for the 1st quarter of 2009. The basic principal of Supply and Demand is what has made our present day "Buyer's Market". Inventory of homes is dropping. If we Realtors convey this to our Buyers and create "Buyer Urgency", those buyers who have been waiting for the bottom to hit will JUMP off the fence and into the market. What happens when inventory drops down? Prices will finally stabilize and eventually head on the rise. Less homes to sell, more buyers out there causes the cycle to cycle back up. This is Good News for Sellers, Buyers and us Realtors who make a living selling and listing real estate.
We are seeing Sellers dropping out, not re-listing after having experienced an unsuccessful listing period. This is largely because these Sellers over-priced their homes, not taking the advice of the Realtors. We've all heard it before, "But my neighbor's house sold for said price and mine is nicer".
Let's look at the analogy of the Stock Market; If you buy a stock for $100/share and a year later you want to sell that stock for $110/share, but the present day stock trade value is $90/share, it does not matter if you think it's a good stock, now does it? You're only going to get $90.
Best Wishes for a Great Holiday Season. May 2009 be your Best Year Ever!
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