Now is the time to sell. If this was the stock market you would execute a stop loss order and lock in your profit before the price per share fell further. But this is the real estate market and not the stock market so it is not as simple as calling your stock broker or going online and placing the order to sell. Besides, if you could sell your home as fast as you can sell your shares of IBM online, where would you move? Furthermore, perhaps you should have sold in mid-2005 when the real estate market was up because now the real estate market is down. So timing the real estate market is more difficult than you think. But the writing was on the wall as we came out of 2005 and started the spring market of 2006.
Let's face it, we're in a declining real estate market. Prices continue to fall as more inventory comes to market. There is hope on the way but will it come soon enough? With elections in November and BRAC about a year away, we may have between 18 and 24 more months before the market starts a rebound. Until such time as more homes come off the market than come on, the current situation is likely to remain the same or worsen. During each of the last three years inventory levels declined as summer sales increased but not as deeply as the year before, thus, leaving more inventory on market that there was previously.
So, are you willing to wait several years for the market to recover before you sell your home? If prices trend down and we're not at the bottom of the market yet, how long will you have to wait in order to sell again at today's price? It could be several years, perhaps 2010 or 2011. You could be very lucky if you traded up or invested in rental property today rather than wishing later that you had done so back in 2008!
Now may be the very best time to purchase a new home if you are thinking about trading up because buying in a down market increases your purchasing power. And, you should be better off since you're likely to live in your home seven to eleven years and have all that time for future market appreciation to work its magic.
In Conclusion
If you are thinking about buying or selling a home or know someone who is, for a confidential, private, professional consultation without any obligation to discuss today's real estate market, please contact Stephen Howell at 410-923-3217.
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