Monday, August 18, 2008
As a seller, it's important for you to understand the nature and complexity of the U.S. real estate market during the recession we've been experiencing in recent years. With job losses, a slowing in the economy, and increased debt per household-in part due to overextended borrowers in the sub-prime loan realm-Americans are feeling less inclined to make major home purchases. Basically, there's an overabundance of inventory in the market with a lack of buyers to match the supply. It's also becoming increasingly difficult for low income buyers with decent credit scores to receive home loans from lenders.
The good news is that we've already hit bottom and are on our way to slow and steady economic prosperity in the housing industry. Unfortunately, it may be another year or so before the market begins to show a pronounced upswing. Since the average price of a home has fallen and transactions have declined, it's important to market your home at a price point that's sensitive to the slow, but steady rebound of the housing market. The government has recently passed a housing act that grants tax credit to first-time homebuyers upon the purchase of a new home. This stimulus hopes to further improve the conditions of the U.S. housing market.
As a seller, it's equally important that you prepare your home to meet the standards of the current housing market. Improve the resale value of your home by keeping up with the maintenance of your home, preparing for open houses or showings and following the suggestions of a professionally certified real estate agent. A basic understanding of the market along with mutual cooperation with a real estate professional will ensure the sale of your home during a more stagnant period in the housing industry.
For more information on market trends and what you can do as a seller to better understand the market, contact me today!