In 2008, I bought in Germantown, TN for $239,000. Houses in my neighborhood now cost $200k and under. Should we sell now before prices drop further?

Asked by Gpb, Germantown, TN Mon Jan 17, 2011

We purchased our home in May, 2008. It is a 5 bedroom, 3 bath home in Germantown. We bought it for $239,000, which was comparable to the other homes for sale in our area. Currently, all the houses in our neighborhood are for sale for $159k to $235k, and they are not selling. It makes my stomach hurt. I really want to move. Should we try to sell now before prices drop further or pray things stabalize soon? I never liked this house very much to begin with, so watching my neighborhood decrease in value so quickly really makes me upset. I don't want to be stuck in my house.

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Brian M. Cruzen’s answer
Brian M. Cru…, , Germantown, TN
Mon Jan 17, 2011

Great question. Most home prices have dropped nationally. However, Germantown is a very stable community. I would suggest getting comps for your home in our current market. Also, get a realtor to do a walk through to make sure your home is staged to sell. Good luck. Let me know if I can assist you !

Thanks in advance,
0 votes
Gerald Willi…, Agent, Germantown, TN
Mon Jan 17, 2011

I’m sure there are thousands of people in all areas that would like to have a concrete answer to that question. There is not such an answer. Like every other thing in our economy home prices are based on supply and demand. Demand has dwindled because the majority of people who want to purchase a house cannot qualify for a mortgage. True mortgage interest rates are a real bargain but like anything else, it is only a bargain if you can qualify. There are many folks who would like to sell. Some because they really could not afford the house they were allowed to purchase, therefore the same people who approved them for the purchase are now foreclosing. Since these financial institutions are now real estate poor they are “unloading” them are prices below the neighborhood rates which in turn drives down the neighborhood price down further to new lows. It is a vicious cycle and I don’t think anyone can predict when this might end.

I have noticed more buyers I the market over the past few months which is a good sign but I don’t think prices have improved much. There are still a large number homes available at bargain prices. I don’t think I helped you make your decision except to say that you simply should look at your personal situation and make the decision that you believe in the best interest of your own family. No one has the correct answer; we’re all taking our best guess. Good Luck. If I can help further let me know.
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Rhonda Avant, Agent, Collierville, TN
Mon Jan 17, 2011
Dear Home Owner, Prices have dropped across the board. I wouldn't advise that you sell your home unless you just want to move. Prices have softened on anything you might purchase so you would make up your loss on what you purchase. Don't panick about your home in Germantown. It is a VERY stable area and has had some peaks and valleys over the last couple of years. I have seen some tighening in certain areas of Germantown with less of a supply than demand which does typically bring prices back up. Rhonda Avant Prudential Collins Maury Realtor
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allan erps,A…, Agent, Pearl River, NY
Mon Jan 17, 2011
Hello Gpb< That answer is tough. However, if you are comfortable in your Mortgage Payment, love the house and it has been good to you I see no reason to not wait it out. Possible loan modification or talking to your Lender is another alternative. Best of Luck, Allan
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