Wednesday, January 20, 2010

When will the Real Estate Market Recover?

That's a question I get asked alot. There are lots of opinions out there (literally hourly it seems) but the answer is really quite simple: Employment and Inventory. With a national unemployment rate at least double what it should or normally be and a bloated nationwide unsold home inventory (doesn't count the dreaded "Shadow " Inventory,more on that in a later blog) how can it recover? On the employment side, I don't have the answer to that one. It's obvious the government doesn't either! However, on the inventory side I have a few suggestions:
1-if you are not in a "must sell" situation and are not willing to take whatever the market decides your home is worth then don't sell. In other words, now is not the time to test the waters because the sharks will bite. Stay put for awhile and you will be ahead in the long run.
2-if you are in a hardship situation make sure you are dealing with a Real Estate Professional that is experienced in these types of sales and is making you aware of all of your options,not just trying to sell(ie-loan mod,deed in lieu, etc)
3-if you are currently for sale, price your home at or below your last comparable sale! We are still in a declining market so why not stay ahead while you can.

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