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“The Market Has Hit Bottom”, Or Should I say, “Mission Accomplished”

By
Real Estate Agent with Barnhart & McKay Realty Advisors

As we are getting closer to our third year of declining home values, Home Owners and Potential Buyers want the truth about the housing market. With the Mirage of information from every Tom, Dick, and Harry Reporter and Economist, the consumers are confused and tired of the rhetoric and it is not fair. Just like when George W. Bush declared Mission Accomplished in Iraq, now five years later and no end in sight.

 

We have all heard the words time and again Recover, Rebound, Stabilize, or "V" Shaped Recovery that gives home sellers the hope that they can get their home sold for a reasonable price. We are talking about and dealing with the most important financial asset in most Americans lives. I have encountered a lot of sellers who have hung their hats on the glimmer of hope that the market will recover, all the while tuning out professional advice from local experts who are out in the trenches everyday. I guess sometimes people only hear what they want to hear and in these instants it has cost them dearly.

 

I have dealt with more than my fair share of home owners who had decided to take their home off of the market and rent the property out with the hopes of selling the home when the market recovers. I now refer to these people as long term landlords, because most of them now owe more than their home is currently worth and it is very likely that our market will not recover for years to come.

 

Our Florida market has experienced double digit losses in 2006, 2007, and will likely be true in 2008. We are experiencing a tsunami of foreclosure properties coming on the market every day and your typical home owner cannot compete with the banks strategies. Banks are not in the business of owning homes and they have proved that by pricing their property listings below market value to ensure that they will sell fast so that they can decrease their finacial exposure. The banks cut their losses and the surrounding community feels the pain of decreasing home values.

 

This article was written with the intent to give a professional perspective to our current real estate conditions. These are trying times and too many people who have never sold real estate in their lives are giving to much skewed information and false hope to people who are down and desperate for something positive. If you need to get your home sold, Price it and Price it to Sell. If you do not need to sell your home, then do everybody a favor and take it off of the market, this is a have to sell market.

 

It is the law of supply and demand, the less homes that are on the market, the more demand there will be for those homes.

 

 

 

 

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