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Market Stabilization?

By
Real Estate Agent with RE/MAX Mountain Properties

The real estate market over the past few months has been amazingly steady. In our market, home sales have been about the same for the last 8 months while land sales are down. (My theory of this, in short, is there are so many homes for great prices that purchasing land doesn't make as much sense as it once did)

I've been noticing much of the media, including Fox News, has mentioned the market is "on it's way up." That's great news! Why? Because the media is largely responsible for the market dropping as hard and fast as it did. The "Sky is Falling" mentality hit consumers hard and created a domino effect to, you guessed it, where the economy is at right now.

Now that the media is beginning to say and acknowledge that things are better, that mentality will reach Americans as a whole. We'll see volume go up over the coming months and especially after the election (as long as nothing too drastic in the way of policy happens after the new President is elected).

Will that translate to instant real estate appreciation? Likely not - market prices will likely remain steady/flat for the next 18+ months. The main obstacle to having real estate appreciate more is to get the glut of housing/land inventory off of the market until your local market reaches it's "equilibrium of inventory." Then and only then will the supply/demand equal out and allow properties to begin appreciating at historical levels.

Now is a great to to buy! The coming months are the perfect time for investors to begin acquiring property. Start keeping your eye out for the "deals" that make sense for the long run. Don't buy to immediately flip unless you steal it. Great values are cropping up and you shouldn't hesitate on them. By the time the media and the market shows true appreciation, you missed the best boat.

NOW GET OUT THERE AND INVEST BY BUYING REAL ESTATE!!

John Poltrock, CRS - The POLTROCK TEAM at RE/MAX Mountain Properties - The Mountains of Murphy, North Carolina - www.MyMurphy.com - www.ilovemurphy.com - Call Toll-Free (866) 687-7496 and demand The POLTROCK TEAM!

Bill Austin
East Valley Living - Scottsdale, AZ

We may be bumping along this bottomfor a while.

It took 10 to 12 years to really recover during the last cycle. How will the Baby boomers sell their five bedroom houses?

Jun 28, 2008 05:44 AM
Royal Goodman
Royalty Home Solutions - Madera, CA
"We Treat You Like a King"

John. Thanks for the thoughts. It makes sense. Thanks.

Jun 28, 2008 05:46 AM
Esko Kiuru
Bethesda, MD

John,

Looks like the tide is slowly turning in many areas now, including here in Vegas. It is a major positive that the media is beginning to talk about a real estate recovery.

Jun 28, 2008 06:23 AM