Real Estate - From "Boom" to "Kaboom"
Looks like the real estate "boom" has gone "Kaboom." We are now solidly in the midst of a buyer's market. But, as a real estate agent, I must ask "Where are all the buyers?"
The normal slowdown we experience from July until the end of August is in full swing. Buyers are on vacation, enjoying family time, beaching it and generally immersed in the freedom of summer.
The summer ebb was preceded by growing housing inventory and blase buyer interest. Deals were being made and transactions completed, but the pace had hit turtle speed.
The National Association of Realtors is predicting that existing home sales for 2006 will be down 6.8% and new home sales will be down 13.47% across the nation.
What does that mean for buyers and sellers?
For sellers, the increased inventory means that there is more competition. What must now be assessed, more than ever, is comparison with your neighbor. Has your home kept up with the times, been maintained, and have amenities that will spark a buyer's interest? A professional real estate agent will know if you don't. Good consumers consider quality and price. If you pale in comparison, your price should reflect that. The increased marketing time will bring prices down, as those that must sell will lower their asking price to distinguish themselves from the herd of other more costly properties.
With mortgage interest rates on a gradual rise (it is forecast that they will reach no more than 7%) a buyer will downgrade the price they are able to pay for housing. The cost of money will offset the declining housing cost.
Are there right times and wrong times to sell or buy? Every situation is different. It depends on the motivation of the buyer/seller, the wheres, the whys and the wherefores; and must be answered on an individual basis. Sitting down with a real estate professional can help the buyer/seller assess the marketplace, and view the facts statistically. No "smoke and mirrors," no "my neighbor said," or any other ideas that have no basis in reality.
Looks like the real estate "boom" has gone "Kaboom." We are now solidly in the midst of a buyer's market. But, as a real estate agent, I must ask "Where are all the buyers?"
The normal slowdown we experience from July until the end of August is in full swing. Buyers are on vacation, enjoying family time, beaching it and generally immersed in the freedom of summer.
The summer ebb was preceded by growing housing inventory and blase buyer interest. Deals were being made and transactions completed, but the pace had hit turtle speed.
The National Association of Realtors is predicting that existing home sales for 2006 will be down 6.8% and new home sales will be down 13.47% across the nation.
What does that mean for buyers and sellers?
For sellers, the increased inventory means that there is more competition. What must now be assessed, more than ever, is comparison with your neighbor. Has your home kept up with the times, been maintained, and have amenities that will spark a buyer's interest? A professional real estate agent will know if you don't. Good consumers consider quality and price. If you pale in comparison, your price should reflect that. The increased marketing time will bring prices down, as those that must sell will lower their asking price to distinguish themselves from the herd of other more costly properties.
With mortgage interest rates on a gradual rise (it is forecast that they will reach no more than 7%) a buyer will downgrade the price they are able to pay for housing. The cost of money will offset the declining housing cost.
Are there right times and wrong times to sell or buy? Every situation is different. It depends on the motivation of the buyer/seller, the wheres, the whys and the wherefores; and must be answered on an individual basis. Sitting down with a real estate professional can help the buyer/seller assess the marketplace, and view the facts statistically. No "smoke and mirrors," no "my neighbor said," or any other ideas that have no basis in reality.
posted by Helene Ashukian at
11:22 AM
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