Well, at least it's not getting any worse...
For real estate brokers, "how's the market doing?" has replaced "What do you think my house is worth?" as the most asked question they are likely to hear. So how does one answer that? Well, faithful readers of this space may have noticed that we haven't posted for a couple weeks. No we were not someplace warm sipping a pina colada, we were right here, showing property and talking with clients, both Buyers and Sellers.
I certainly don't mean to give anyone the impression that the market has gone crazy, far from it. Buyers are being very careful, as they should be and where they may have looked at 8-10 homes previously they look at 20-30 homes now. Of course part of that is a function of there simply being more inventory on the market. They ask for information about all of the neighborhoods and communities where these homes are located. They ask for careful analysis of what they can expect the value of their potential purchase to be in the future and we're happy to provide them with that.
Sellers ask hard questions, also. No one puts their home up for sale in the face of the unrelenting negative media reports such as we experience now unless they are absolutely serious. They want the clearest possible analysis of their homes value and how they can expect the market to react to it.
Meanwhile on a macro scale, the Fed cuts rates and pumps liquidity into the banking system. The Administration and Congress actually do something and pass a stimulus package. The unscrupulous mortgage brokers go out of business leaving only the most competent still standing like wheat separated from chaff. And the business cycle keeps on turning.
Slowly, methodically we work our way out of this mess. We take 2 steps forward and 1 step back. Today the CPI report looks good, tomorrow oil prices will rise on a weak dollar but then next week the Fed will cut rates again.
But pent up demand, low rates and just maybe a light at the end of the tunnel and all of a sudden it feels like we can answer that constant question with "Well, at least it's not getting any worse." Now truly is the time to buy and for those individuals who have been trying to time the market and wait for the bottom, I'm afraid some will be kicking themselves someday over not buying now.
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