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How Many Bottoms Can One Market Have?

By
Real Estate Agent with Gayle Harvey Real Estate, Inc.

Has the market hit bottom yet?  Actually the answer is yes and no.  If that sounds like an evasive answer, let me explain.

Just like we hear all of the time that the real estate market is local, we even need to break it down further beyond states or towns or neighborhoods to specific properties.

Rick Harper has written an article in RisMedia Real Estate News that proposes this idea, Have Real Estate Prices Hit Rock Bottom.

If you look at the real estate market from the perspective of specific properties, it makes sense that all homes won't hit bottom at the same time.  From this point of view it becomes apparent that some individual homes have hit bottom and they have sold; others will never hit bottom because their sellers will decide that they are unwilling to go any lower and they will withdraw their home from the market; and there are still other homes that may drop further in price and thus have not yet hit bottom.

 According to Mr. Harper "the trick is identifying the bounce and when to buy a specific property."  He advises that " you must only consider how you will benefit from that specific property.  You must ignore everybody else and their investments."  If you follow this train of reasoning, the question of when the market hits bottom becomes irrelevant.  All that matters is the timing as to when you can purchase the home that you want at the best price.

If you would like to talk about buying or selling a Charlottesville home, please give me a call.  For sellers, I am happy to perform a free cma so that you can see what your home might bring in today's market.  Properly priced homes are selling, so it is important to price your home correctly from the beginning.  If you are considering the purchase of a Central Virginia home, lets talk about how I can help you find the best home, for the best price.

Or perform your own search of Charlottesville and Central Virginia homes.

Pam Dent, e-PRO, SRES, NHD
Real Estate III
Charlottesville, Virginia
 434 960-0161 
Charlottesville Homes
Charlottesville Horse Farms

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Randall Schrader
Competitive Insurance of Dundee - Dundee, FL

You are preaching to the choir.  Although the broader markets won't be that far off it's the specifics that matter.

Sep 30, 2008 07:45 AM
marti garaughty
garaughty.com - Montreal, QC
a highly caffeinated creative type...

 hi Pam, as an ex NASDAQ daytrader, I learned many times the hard way not to try to predict market bottoms(stocks or real estate), it's usually only clear to see in retrospect (unfortunately)

Sep 30, 2008 09:02 AM
Chuck Willman
Chuck Willman - Alpine, UT
NewHouseUtah.com

I like to track two bottoms... one being quantity of sales... the other being home price. In certain markets quantity of sales are going up while pricing may still be falling. Besides, as Marti says... we find the real numbers in retrospect.

Sep 30, 2008 05:44 PM
Pam Dent
Gayle Harvey Real Estate, Inc. - Charlottesville, VA
REALTOR® - Charlottesville Virginia Homes / Horse

Randall - We realize that it is about specific properties, but so many consumers are still trying to time the "bottom".

Marti - You are right.  We know that it has hit bottom when we see it start going back up.  By then it is too late.

Chuck - In those markets the quanity of sales are going up because the prices are falling.  In the end it is all about what a particular buyer will pay for a particular property.

Oct 05, 2008 04:48 AM