RISMedia, a real estate news source, recently reported that at the top of the most frequently asked questions list is, “How will we know when the market has bottomed out and we should buy a home”? We have experienced that question many times and I concur it is on the front of most buyer brain lobes. Buyers want to buy right at the bottom; who wouldn’t?
The answer does not appear to be all that difficult and I agree with the report in that there are two major factors that one should consider and watch. When you see an increase in listed sales and sold prices and a decline in inventory you can be reasonably sure we have hit bottom, right?
Nationally it appears we have started to see a decline in listing volume; it is however much more difficult to gauge the sold price data. Sale prices will be affected by some of the discounted foreclosure sales; hence lower average prices.
Locally we have been far less affected by foreclosures but inventory remains high compared to three years ago. Buyers still have, in my opinion, a great deal of opportunity because of listed volume and interest rates that continue to be historically low. That all could change if rates increase and inventories shrink.
Personally I was never any good at stock market timing, too many variables! Timing the real estate market isn’t that easy. It's made up of more than inventories, sales prices and sales volume. The overall economy and other factors such as buyer confidence, location, population growth, job growth and more, has an affect on the real estate market. Oh, and don’t forget about the fact that this is an election year. What’s your opinion; I’d like to hear from you?
On the home front - we've had just outstanding summer weather. Each morning when I leave the lake to go to work I wonder why? Go back to the beginning of the above paragraph….I never was good at market timing, hence I work. Thank God I am able!
Life is Good…..Enjoy!
Gary Nathan
cell 715.699.4040
Amanda Mavis
Woodland Dev. & Realty
Hayward, WI 54843
nathan@garynathan.com
www.garynathan.com
www.haywardwaterfront.com
