The sooner more sellers realize this, then the sooner they'll sell their properties in this market.
In my view, the "market" is not likely to return to what it was (i.e., the high levels of annual appreciation we saw b/t 2001 and 2005).
While I agree with Diane's input (with whom I have great respect) about Jeffrey Otteau's evaluation of the market in that the market will begin to once again appreciate sometime in 2011 (at a minimal levell), I beg to differ on the 1% per month devaluation of Mr. Otteau in the current market.. In fact, in a recent Otteau seminair (3/09), I stood up and asked Mr. Otteau "what is the basis for your 1% per month decline evaluation" and "does this apply to every neighborhood." His response . . . hummunana hummuna hummman ahhhhhhh. . . . "well, of course, past history" (so Mr. Otteau do u mean the decline of the early 90's or pior), and no, this does not necesarilly apply to every neighborhood. Mr. Otteau's response raised major concerns for me as an agent.
Since your profile indicates "Whitiing", I am going to assume that are asking this question as an owner of an adult community. This throws all a whole different wrench in the appreication/depreciation as Adult Communities are a specialized market (per myself and Mr. Otteau) and could differ in current predictions.
If you would like a no obligation, current evaluation of your property, I would be happy to oblige as 33% of my busness is working with adult coummunitiies.
Love and Peace,
Francesca, Realtor, ePro
A good barameter of how a market is doing is to keep your eye on market absorption - it measures how long it is taking homes to sell. It is an easy stat to calculate if you have access to the data - take the total number of homes in the market you are studying and divide by the number of homes that have gone under contract in the last 30 days -- the result is the number of months it will take to absorb the current inventory at the current rate of sale. When you see that at 5-6 months, you are in a normal market, over that, buyers are favored, under that, conditions favor sellers.
If you are thinking about a sale this calendar year, then list now so that you don't miss any more of the Spring market. If you are looking ahead and have the luxury of waiting, then just remember that the Spring market begins much earlier than most sellers think. In fact, it begins to percolate after buyers shake off the holiday fog. My recommendation to sellers is this - get through the holidays and then use January as the month to complete your readiness with the goal of listing in February, but no later than March. Although today is a chilly day and it hardly feels Spring-like, fact is, the Spring market is not beginning -- it is almost over.
Good luck to you!
Search and connect at http://www.feenick.com
The current market is tough. Yes. But it has shown signs of turing around so far this year. Now I do not mean that houses are flying off the MLS at 2005 prices. Sellers need to be realistic to the market conditions of today and price their homes accordingly.
If you can, hang on and be patient. I believe we are at the bottom, there is no place to go but up. Probably not the up we saw a few years ago, but up.