Maybe the credit ending in spring will help cushion the possibility of a stalled market. I just hope it goes to a normal market. I'm a little over the extremes!
Lots of people will think agents are talking this up and trying to create the illusion that the market is changing; and that the national data you're looking at that was collected months ago, without intimate knowledge of the market, tells the real story. Believe what you want. But, the market is changing, and you may have already missed the bottom.
Beyond that, don't try to time the market - youll lose. Buy when it is right for you and your family; and buy for the long term so you can ride the tides of the market. Read David Bach, Automatic Millionaire Homeowner (note: this does not say overnight millionaire - it's real advice for real people).
For this month, 20% of our office sales were over the $400 range, which is about twice the average price range so that was surprising. I can't even describe how busy this last week was for me..negotiated three home inspections just yesterday. A lot of people were crushing in sales these past few weeks. Surprisingly, two of my buyers did not know they qualified for the credit. It really is surprising and you'd think that people would know about it but you really don't see a lot of coverage on mainstream media. Maybe if they covered it on 'entertainment tonight' people would be aware of it. For my third party approval listings, the end of the credit is, in my opinion, good. Buyers who were counting on the credit were not willing to ratify a contract with that contingency for fear of not closing on June 30th. Now we can quite wasting time negotiating and countering with buyers who won't ratify without some written assurance and deal with buyers who are willing to exchange time for a better deal. We'll see!
I live not too far from Bristol. You had an awesome veterinarian who helped us with our dog when no one else would. I have a soft spot for Bristol. Don't blink or you'll miss it.
Prices in Wisconsin are really all over the board, you cannot even go by city anymore. You have to judge stats by pockets within the municipalities. And although some of the higher end homes are still needing to come down a bit, for the most part, I'm seeing absolutely unbelievable price reductions all over the board. I do not see a continuing drop though. The prices are starting to hold steady and in the lower priced homes are actually starting to come up.
I was born at St. Catherines in Kenosha..raised in Bristol by Lake George Tavern so I got the 'church and bar' connection covered!
Our market got a little crazy here and we have seen an adjustment in prices. 6 - 15% depending. I just went to WI a few weeks ago and was pretty surprised that the prices there were higher than here!
I do have sellers moving to TX and they told me that the house they wanted went UP recently. We think the seller thought he could squeeze a little more. My sellers don't qualify for the credit anyway so they have decided to wait and do their shopping starting this week! So, they will buy but expect a good value.
As for the effects on the sellers, we are seeing well priced properties in good condition seller more quickly and for slightly higher prices than the end of '08 and beginning of '09. As I have no real data yet to back that up, I was thinking to myself that prices on the Peninsula are rising, and one of my Buyers just voiced that out loud last week, which helped her to decide to stop looking and make an offer. She said she has been watching data on Trulia and Zillow for some time and based her decision on that.
Another factor: because of the government intervention, mortagage lenders are encouraged to work out a loan modification for seller who are behind on payments, rather than foreclose. There has basically been a hold on foreclosures, which has decreased inventory. That has raised the interest of buyers (and perhaps prices) in those "traditional" sales. Another subjective indicator of market improvement: My home inspector reported he has not inspected a vacant home in 2 weeks-- everything has been owner occupied, where earlier this year, almost all of his inspections were on vacant properties.
My concern for folks who wait is the interest rate. As housing prices rise, so will the interest rates. Right now, we are still rates in the mid to upper 4's -- that is unbelievable!! Again, who knows how long that will last? The decision to buy is based on a lot of personal factors, but if anyone is even considering purchasing for the first time - or moving up--it doesn't hurt to check out the facts: call your friendly neighborhood lender and see exactly what your monthly cost would be with the low rates along with your tax deductions for mortage interest. See what fits into your budget, then go online and see what you can afford. Is it better than where you live now? Do you want to start building equity? If you haven't owned property in the last 3 years, would a check from Uncle Sam for $8000 help you?
Boy, I wish I was first time buyer right now-- I can think of many ways to sepnd that check!
It's like the stock market - if I sell now I might miss out on the price going up more, but if I don't sell now the price might go down. The only way we know for sure is if we wait and see. By that time it's over one way or another. If you wait and the price goes up awesome! But if the price goes down you just missed the boat. If you're in the market to purchase now, evaluate your situation and your needs; short-term, long-term, investment, etc.
Today we're in a strong buyers' market; what reason could there be for a ready, willing, and able buyer NOT to buy?!? Today buyers have choice of homes, incredible interest rates, and all sorts of incentives! I guess we can always wait for that sellers' market to come back and have to fight for a home, forget about home inspections, pay more than appraised price...