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
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