Norman S Ham…, Real Estate Pro in Wethersfield, CT

Does anyone agree we're nearing the bottom of the market?

Asked by Norman S Hamilton Jr, Wethersfield, CT Sat Mar 5, 2011

My understanding is that the banks are withholding a great deal of properties back from the market and once released they will strain home prices even more. We can also expect to see another wave of foreclosures to compound this situation and the swelling inventories.

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Christine Moran Realtor & Notary’s answer
BEST ANSWER
No. This spring with the rates still low will help, but house prices are low, low ,low and no one wants to sell. They say there is a second wave of forclosures coming.I think the market is still dropping, but in 5 years it will have recovered.
1 vote Thank Flag Link Sun Mar 6, 2011
Signs are pointing to a bottom of the housing decline. I think that only time will tell. I believe people need to feel more confident in where the economy is headed as well as gas prices being stabilized before we can tell for sure.
1 vote Thank Flag Link Sun Mar 6, 2011
Norman, everything is local . . . However, last year I had my best year in a few years, if that means anything. At our Kickoff Meeting in January our guest speaker was the number cruncher for Smart Numbers, the outfit that advises developers on location, price point, land cost, timing, etc. I had an opportunity to see him at a round table 2 years ago and he said no one could predict when we would come out of this and that if anyone did, they were just guessing. Well, in January he predicted we would start to see a turnaround (gradual) in 4Q11 or 1Q12. He said we were bouncing off the bottom now.

Furthermore, and to back him up, I have seen the beginnings of housing starts (not many) for the first time in a few years. I'm even seeing yellow re-zoning notices around the area where developers are starting the process of going before the zoning commissioners to have vacant property zoned for single family homes.

That's what's going on here. I hope these are indications that we are coming out of this. Maybe banks sitting on inventory won't have as great an effect as we thought (at least here).
0 votes Thank Flag Link Sun Apr 10, 2011
FHA just raised the mortgage insurance premium and we are still working on getting lots of foreclosed properties off of the market in Springfield. These are two reasons that I think we are still in a declining price situation, however I believe we are very close to the bottom. Just a little good economic news is needed to turn this around fast. We will probably see prices stay level for several years to come starting in 2012.
0 votes Thank Flag Link Sun Apr 10, 2011
I think we are off the bottom, as both a builder and a agent I can say this is this best start we have had in a couple of years.
0 votes Thank Flag Link Wed Mar 23, 2011
Some areas, towns, price points, and types of properties are up, others are down and others are stagnant. A local pro is even more important than ever before.
Web Reference: http://www.CapeGroup.com
0 votes Thank Flag Link Wed Mar 23, 2011
If you believe there is no inflation and we are stuck in a recession than we are not at the bottom.
If you checked lately what your dollar buys and how your saving is doing perhaps it is time to see that not only does real estate makes sense but how long before you will not be able to afford to buy it?
0 votes Thank Flag Link Mon Mar 14, 2011
Much of what is happening here on Cape Cod shows price increases. It does vary from town to town and village to village. It is a very local question. As also mentione below, there are so many pieces to this when looking globally, anything can happen.
0 votes Thank Flag Link Mon Mar 14, 2011
Norman:

It will really depend on the "Black Swan" events which are worldly events unforseen and uncontrollable that will dictate whether we are near the bottom or not. The oil prices rising could erode much of the progress made over the past 24 months and I believe we still live in a tumultous time that is hard to predict. Best in 2011
0 votes Thank Flag Link Mon Mar 7, 2011
This is such a blanket statement I dont even know where to begin. Every state, and city and to some extremes subdivision has their own market(s).
0 votes Thank Flag Link Sun Mar 6, 2011
no one has a crystal ball but the signs are pointing towards a great spring market
0 votes Thank Flag Link Sun Mar 6, 2011
A watched pot never boils.
Maybe we can agree to focus on something else and let the market do what it wants to do.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Sun Mar 6, 2011
Home owners in certain location may view the current market status as, "being below the bottom of the market."

But seriously, we too view the present market as "bumping along the bottom" in most locations.

Bill
0 votes Thank Flag Link Sun Mar 6, 2011
I've got that feeling, but, you never know. I am a buyer in this market.
0 votes Thank Flag Link Sat Mar 5, 2011
Depends on the area. I believe our area peaked in summer 09 but only time will tell. I see a strong demand for bank owned properties in my market. I don't see the release of them being an issue that will bring down property values again.
0 votes Thank Flag Link Sat Mar 5, 2011
Banks are starting to release a lot of bank owned in our area. One REO agent just received 35 properties today! Along with HUD homes, thousands to be released in our area - I believe this will actully stimulate the market in highly sought afer areas.
The auctions in our area are seeing high levels of postponements, showing the banks are either A) going to foreclose, or B) still working with the seller on Loan Mod's (ain't going to happen!!)
:Prices are one issue...........the tougher down %'S for FHA in April will complicate the situation a bit. Unemployment & trust in the economy is the biggest issue in my opinion.
Real Estate is always an up and down industry.....maybe we'll be down in prices or qualified buyers, but it will level out.
Web Reference: http://www.Weberhomes.Info
0 votes Thank Flag Link Sat Mar 5, 2011
if unemployment hit 7.5-8% by end of this year, then we have seen the bottom of housing.
0 votes Thank Flag Link Sat Mar 5, 2011
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