Just about every day people ask me: “So how long is this down real estate market going to last? Where’s the recovery?”
They’re surprised when I tell them that in some markets, the recovery is already under way. Consumer attitude often lags behind local market data.
You see, there were lots of market indicators as far back as 2005 that the bust was on its way. Despite the fact that inventory on the market was increasing, prices floated up well into 2007. But there came a point when the “market data came home to roost.”
And when it did, well... no need to rehash bad news.
In some markets (especially those where buyers have recognized the incredible values and low interest rates) we see several indicators which suggest rebounding market health: Shrinking inventory, multiple offers, and fewer days on market. This is especially true if you look at non-distressed properties.
If those indicators are in play, you’re not in a buyer’s market any more. It’s becoming a seller’s market.
Obviously, tight-fisted lenders and buyers facing shaky job prospects exert their influence on the market. People are wary, and that psychological uncertainty is a part of the pervading sense that “things are bad.” But if you have access to capital and stable income, now is no time to be holding back. We’re unlikely to see these buying conditions again for a long time.
Oh, and by the way: Don’t forget the relatively low amount of new construction during this time paired with the pending population boom in the U.S. over the next 40 years.
Now is definitely the time to buy before the market moves up.
Is the recovery already underway in your neighborhood or neighborhoods you’re considering? Contact me to find out!