I am not sure if it has hit the bottom but we are shallow water. prices for homes are down statistically in many areas of DC Metroa are. This due to many factors such as obtaining credit, etc. If you have the income and money saved it is a great tiem to purchase and/or add to the your real estate portifolio.
Foreclosures have been on hold for a few months but that is getting ready to change soon and the banks will start more active foreclosures and marketing the ones they already have, Again, until those properties are absorbed prices will continue to decline IN THOSE AREAS.
This is the 5th buyers market I have been through. In each of the other recessions it took 4 to 5 years to dig our way out of the messes we created...some bigger messes than others. We are on the mend now but things are dicey. I do not expect things to get a lot worse then they are for Charlotte area SELLERS, and it can't get much better for BUYERS. This is the best buying opportunity you will ever see in your lifetime. Nothing stays the same. I expect in 4 to 5 years will we be in a much healthier market than we are today but prices and interest rates will be higher.
I can say that I believe the bottom has already come and gone in Northern Virginia. Although the Fall and Winter season has caused prices to fall slightly due to decreasing demand vs. Spring/Summer. Overall I believe a strong job market (which is something we have here) really helps with improving the Real Estate market.
My Entire Inventory of VisualTours
I being an agent in Charlotte, NC. I think the question should not be have we hit the bottom yet so much as is this the new norm? I do a lot of statitistacal numbers for clients on a daily basis and try to trend market conditions based on present and past sales... I am not sure if we have hti the bottom as much as we might be at a new norm for price levels.
As an economy we cannot afford to go back to the way it was before the crash. Consumers and home buyers would love that; but we would be back to where we are at right now in 4 to 5 years if that happened.
Everyone talks about the market going down...Well going down from what level? what was a feasible level to maintain where mortgages were given out responsibly and people took them responsibly and home pricesd were not inflated....I think if we go back to that level we might not be that far off from what the "real norm" is
If you are waiting for the bottom to buy, don't, also note the interest rates, under 4% is incredible. How much is it costing you to pay rent? Real Estate is local, local markets differ. There are areas in Charlotte that are doing well, other areas are still struggling though.
Real estate must be viewed on a local level. We can't say that the nation as a whole has hit bottom as some areas are fairing better than others and some are not showing improvement.
Time will tell...
Prudential Connecticut Realty
Thank you for your question. As a Realtor who specializes in market trending and annual market predictions, I must say I really love your question. The problem with answering it is twofold, first, we need to specify the market area because the market as a whole is not only geographical, but also cyclical, meaning depending on the area, time of year, even if it is an election year, it will have an impact on market trends and predictions etc...each market will have a different outcome. Second, until we have a clearer idea of the intentions of lenders with the current inventory of foreclosures that have not hit the market yet, we canonly spectulate on what the effect will be based on our best assumptions.
There are areas, particularly in the Southern and Mid Western States, that have HIT BOTTOM. They are seeing inventory numbers falling off to normal timeframes (for example, instead of 14 months of inventory they see 4 months).
One of the key factors I try to educate buyers on is that the COST of buying a home now verses next year with a current interest rate as low as 3.6 percent is if that rate increases just a half a percent, even if home prices fall...the cost of buying that house a year from now at a lower price will actually cost you more money then buying it now with a higher price and a lower interest rate...
I hope this information helps you. Thank you again, and have a great day.
Smith an Associates