What is happening to the economy now?

By
Real Estate Broker/Owner with Crossroads Real Estate LLC

If stocks prices are on the rise, are home prices to follow? I checked my stock account Friday September 24, 2010, and again this morning, Monday September 27th.  Stocks are soaring.  According to my account information, I had lost 50% of my investment over the past year.  It took 12 months to dwindle to what it was last 2 weeks ago.  Last week a change began to occur.  In a little over a week I have seen a gain of about 23%.

If the stock market can change that quickly, what about the housing market?

Last week a client submitted a cash offer for an REO property listed at a very attractive price.  This property received multiple offers, and we were asked to submit a highest and best offer.  My clients offer was perfect in my estimation, offer price was over the list price, no inspection, and it was a cash offer.

After reviewing recent sales in the area my client took my advice and raised the bid price to a level I did not think would be beat.  Low and behold, our offer was reject, and another accepted. 

Over the past two weeks I also received multiple offers on two of my listings, near or above list price.

Is this the beginning of a trend?  Will we see housing price rise as quickly as stock prices?  No one knows the future.  With low prices and low interest rates, I am surprised so many buyers are sitting on the fence.  They can get knocked off that fence in one of three ways. 

1. Study the figures and make an informed decision.

2. Wait and have another buyer make the decision for you.

3. Wait and have market prices rise to a level the market makes the decision for you, by pricing your first and second choices above your price range.

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what is happening to the economy now
stocks prices are on the rise
are home prices to follow

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Rainer
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Ilona Matteson
Beach Realty & Construction on the Outer Banks of NC - Duck, NC
Ilona Matteson

Dennis - A great way to know if your market is rising is by looking at supply and demand.  Is your number of available listings decreasing?  Do you have more buyers purchasing each month?  When the gap between available homes and number of sales gets smaller, your market will start rising.  Great news!

Sep 27, 2010 04:18 AM #1
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Dennis Herman

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