Ok, no one really knows for sure if the market has hit the bottom. So let's just get that out of the way up front. All you can do is make an educated guess for your geographical area. But there are a few clues you can look for when trying to decide if the market is close to the bottom, if not at the bottom. And since you can't definitively predict the exact bottom, you should just shoot for getting close to it.
1) Is inventory low in my area?
2) Have short sale and foreclosure numbers diminished?
3) Has my Realtor mentioned that there are quite a few buyers looking for homes in my area?
4) Have I heard about multiple offers taking place on listings?
5) Have rent prices gone down a little bit?
6) Have banks loosened up a bit on giving loans in my area?
7) Are more sales appraising out now than before?
8) Has there been a slight uptick in sold prices in my area?
9) Has market time lessened in my area?
10) Has demand increased in my area for homes?
If you can answer Yes to most of these questions, then it is probably a good time for you to buy a home. Affordability is great right now, and interest rates are the lowest they've been in decades. Don't get frustrated if you have to sell your home in this market, because whatever you lose on the sale you will most definitely gain on your purchase.
Kathy Barkulis
Re/Max Suburban
Arlington Heights, IL
847-385-3015
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