Market Predictions
Everyone has their own opinion on where the market is going. There are many facts that can give us clues to where things are headed, but there are also many factors that are yet to be known that will also have an impact. Many people saw this downturn coming, but many didn't foresee such a fast and dramatic fall. We certainly understand your dilemma and confusion in today’s market. These are uncertain times for both buyers and sellers - BUT things are changing now.
Being “in the field” everyday we talk to buyers, sellers, investors, home owners, renters and other Realtors. We read real estate news from the Arizona Association of Realtors (AAR), the National Association of Realtors (NAR), and other real estate related organizations. We listen to media reports about the housing market. We attending continuing education seminars and preview a large number of properties to stay informed about local inventory. We do this so we can have the big picture in my mind about the national and local economy and how it relates to the local real estate market.
As I have said before, everyone’s situation is different and whether or not you should buy or sell depends on your personal situation. As a Real Estate Consultants, we are here to help you evaluate your personal situation and see how it fits into the overall “big picture” of the real estate market. For some people, it may not be a good time to buy or sell. But for others, opportunity knocks.
Yes, the future is uncertain. If we had a crystal ball, we’d be rich. The best proven approach for real estate investing is to buy low and hold. Buy low doesn’t necessarily mean wait until that point in time when the market has hit its lowest point. How will you know when that is? When everyone else knows too? Then it won’t be a time of opportunity. Buy low means get the best possible price in the current market. If I could find you a property priced below market where the Seller is willing to negotiate incentives, then that would be a good buy in this market. If you hold it for more than three to five years, you will see appreciation.
Everyone’s personal situation is different and every home for sale offers different opportunities for negotiation of price, terms and conditions depending on the seller’s personal situation and motivation. There are opportunities out there and if you plan on living in the home more than 3-5 years, what the market does next month or next year won’t really affect you. You will be living in the home you want and enjoying it for years to come and the market will go up again.
Real estate is cyclical. It goes up and it comes down. Just how much it will go down with this correction is still to be seen. We have already experienced a 25-30% drop locally - more than anyone ever anticipated. We currently have low inventory, a low rate of foreclosures and affordability levels in check. Now is the time to buy here.
If you have to sell in this market, there are a lot of marketing strategies that can be used to attract buyers. Price plays an important role, but offering up front buyer incentives can sometimes attract those buyers who need a little help. Making your house both visually and financially appealing to buyers will set you apart from all the competition. As your Real Estate Consultants we can guide you through the selling process to bring you the greatest return, in the shortest amount of time, with the most favorable terms. Ask us about my specialized Marketing Plan.
Here are some interesting links to use as resources when forming your own opinion of the market and how it relates to your own circumstances.