It takes sunshine and rain to make a rainbow. The real estate market cannot always be about rainbows, cotton candy, and cute bunny rabbits. Conversely, it cannot always be about doom and gloom either.
What we have occurring in today's market is about as close to both as you can get, and that is why the rainbow we have today has amounted to a perfect real estate storm for sellers. Prices continue to increase for good reason. Florida has an overabundant amount of shadow inventory in foreclosures because we are a judicial state, which partly means that the whole process takes forever. Thus, a backlog of inventory lurks in our back rooms waiting to come out. In the meantime, however, there is no other inventory. Traditional, foreclosure, and short sales have diminished while buyers have not stopped coming into the country looking for quick and easy deals. Add to that low interest rates and an improving economy and you have just created a rainbow for your clients wishing to sell. This is the sunshine.
And when that shadow inventory finally opens up do not worry. Banks are not hopefully stupid enough to flood the market. They will trickle in and blend with the others, thus creating a niche for the investment buyer. This is the rain. The combination of the traditional market mixing with the depressed market make for a beautiful rainbow of selling.
The problem during the housing bubble was that there was only distressed sales while the traditionals held back. When you do not have the proper mix it can only lead to disaster as we have experienced.
Now is by far the best time to sell your property before interest rates rise and scare off buyers. Is this a good time for buyers too? Not exactly, but if you are in the market to purchase the good news is that you can still get a fantastic interest rate and that is nothing to sneeze at. The problem will be finding a home and then squaring off against the competition. These are hurdles that can be overcome with the right real estate agent. Remember, do not let anyone talk you into paying more than market or appraised value for a home. This is what got us into trouble in the first place. Let the greedy find some other sucker. In the meantime, you just move on and find a seller who is realistic about selling for market value.