Will the market get worse before it gets better?

Asked by Lisa, Cleveland, OH Mon May 11, 2009

I was recently told by a realtor that they anticipate the market getting worse before it gets better. I am curious to see others opinions on this matter. The market we are currently in (selling) and looking into (buying) is the Medina, Strongsville, Middleburg Hts region. Any thoughts??

This conversation was a result of us interviewing realtors to list our house. Not sure if it was just a minor scare tactic to get us to jump and sign... I would hope not.

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12
Bob Kienast, Agent, North Royalton, OH
Wed May 13, 2009
Our office is on the south end of the communities you named. We are finding that listing inventory is down from this time last year, and the amount of time it takes for a new listing to sell is also down. This is no doubt a result of sellers being more realistic, and pricing their property based on what the market will bear and not what they "need".

The area is especially good for "move up" buyers. Even if a seller is taking a hit on the sale price of their current home, if they are buying up into another price range they are getting the new home for an even better price than they may have 3 or 4 years ago. All the numbers show that the prices are bottoming or have bottomed. More than ever real estate is local. In some communities the opportunity to buy bank owned or stressed properties are keeping prices artificially low, but as these properties leave the market the over all sale price as a percentage of the list price goes up.

I have found that honesty rather than pessimism and "scare tactics" is most effective.

We are on the South end of North Royalton Ohio. Feel free to contact me personally for more detailed information on specific neighborhoods.
Web Reference:  http://www.bobkienast.com
1 vote
Voices Member, , Benton County, OR
Tue May 12, 2009
Lisa, you might want to take a look at housing trends/sales/medium prices ect in the areas you are considering...
http://www6.onboardnavigator.com/1.5/WebContent/OBWC_report.…

http://www.bhgrealestate.com/Views/Look/Default.aspx
This is just one of many sources you could use to help you determine who to listen to when you continue interviewing. Ask them what they based their opinions on and can they show you some facts they use to support their advice. You're making important decisions and want to be sure you hire the agent best suited to help you achieve your goals.
Dunes
1 vote
Dee Nofziger, Agent, Toledo, OH
Tue May 12, 2009
Since you are both a seller and a buyer, I will answer taking that into consideration. Truly, your decision to sell is based on motivation and/or need. But the bottom line currently is that even though you may get an offer less than what you really want on your home, you will most likely also OFFER less for the home you choose to purchase. What you end up with in your pocket after both transactions are final, is the number you should be comfortable with. If you are UPsizing, the the difference in list price vs sales price could be significant and you could actually end up MAKING money on the deal.

But it's all about your motivation.
Web Reference:  http://www.ask-dede.com
1 vote
J R, , New York, NY
Mon May 11, 2009
Obviously I am not in OH, but my answer about the market ANYWHERE is that even if it begins to strengthen tomorrow and home values rise, what is your home's value now? What is it rising from? I've had sellers want to list at 650,000 when I thought they should be at 550,000. Then they tell me "I heard sales of existing homes went UP last month, things are going up". The problem is, this person already thinks their home is valued at 100,000 more than what I think it should LIST for. See what I'm getting at?
1 vote
Heather Srod…, Agent, Strongsville, OH
Mon May 11, 2009
Hi Lisa,

Given the state of the economy, it's natural for people to have a negative outlook on the real estate market. Many experts do believe that we haven't seen the end of the downturn yet, but if you're in a position to sell your property, I certainly hope this agent explained the benefits you will reap on the "buy" side when you purchase.

Right now, supply outweighs demand and with so many jobs being eliminated, downsized and lost on a daily basis, it's easy to see the glass as half empty. That being said, it's important to see the market for what it is; to understand it in your area and to accept what the market says your home is currently valued at.

Every market in the Cleveland metro area is different and in your area, if houses are selling and if you're willing to sell your home in the price range that is comparable to recent sales of homes similar to your own, then by all means sell! You will find yourself in a position to possibly purchase more home at a very reasonable price when you buy. I see this as a positive thing!

At some point, the market will start to creep back up. No one knows for sure when that will happen, but when you buy and the market levels off, you may just find yourself pleasantly surprised to see the value of your new home is worth more than you had anticipated.

On another note, if that's the one thing you remember most about the agent you interviewed; perhaps you should consider hiring another agent. I'm thinking they didn't make a positive impression on you, which may be reflected in your home selling experience.
1 vote
Daniela Mara…, Agent, Strongsville, OH
Thu Jun 20, 2013
Hi Lisa,

Don't be nervous, buying and selling can seem stressful. Although working with a realtor you are comfortable with is the first step. Make sure the realtor you choose makes the efforts to conduct open houses for you along with Brokers opens. It's a fantastic market.. Showcasing and properly marketing your property is key. On a purchase.. you will be amazed on what you will gain, plus interest rates are at a record low.

If there is anything I can do to help, Please call me
Daniela- Keller Williams
440-292-5656
or email me luxuryspecialist@kwrealty.com

http://www.luxuryspecialist.kwrealty.com
0 votes
John Wirsing, Agent, Pepper Pike, OH
Fri May 22, 2009
Lisa-
I still feel that this market is heating up!
Just as an example, in Strongsville there are currently 160 homes priced between $150,000 to $250,000.
Since 2/23/09 through 5/22/09, there have been 226 homes that have sold in that price range! That's right about 75 homes a month. So there is just a little over a 2 months supply of homes on the market in Strongsville. By just about anyone's definition-the Buyers market in Strongsville for homes in this price range-is disappearing! The laws of supply & demand will always win out.
I would be happy to meet with you to market your home.
Please drop me a note at jwirsing@kw.com or call me at 440-487-2193.
John Wirsing
Realtor
Keller Williams Realty Greater Cleveland
http://www.BestAreaHome Search.com
0 votes
Bill Eckler, Agent, Venice, FL
Tue May 12, 2009
The national RE market is impacted by a multitude of factors. Even though we are seeing significant indications of a recovering market it is still in a very delicate condition. One that could be influenced by nearly any type of national economic setback.

Regarding your interview....it is common that prospective sellers interview several possible agents. By taking this route you should experience a much higher degree of clarity.

Good luck
0 votes
Susan, , Massachusetts
Mon May 11, 2009
I "think" we `re skidding along a bottom now. Don`t know how long it will last though. I`ve seen a slight improvement here north of Boston.
As far as getting worse; if no major financial calamity (BofA going under etc) or worst case scenario- another terrorist attack, we`ve been through the worst. It was a huge drunk. (higher & higher prices) ...the hangover`s going to last a while.

P.S. Ditch any realtor who uses "scare tactics."
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Mon May 11, 2009
Hi Lisa
As you can see buy the various responses here - NO ONE knows what will happen! We all have our own opinions..... it's called guessing!!
OK, so that being said - I'll add my opinion!

I think the worst is over, but that doesn't mean there isn't room for prices to drop a bit more. Unfortunately, future job losses will still result in more foreclosures, so they will have to be dealt with. My projection for the next few years is that we will plod along with dips and rises periodically until the economy as a whole begins to recover, and consumer confidence increases. I don't foresee any big appreciation occurring, not for a long time - at best, it will be gradual, but that's still a ways off.
Right now my area is experiencing a rise in activity. There can be multiple offers on well priced listings. In the past several weeks there are more showings and homes going under contract. I have been busier, too, with my personal business. Now, this doesn't mean we are out of the woods - no way. It just means that there are buyers out there who will jump in when they see value priced homes. This rise might settle down again once summer gets underway, who knows. Again, I am only commenting on my area. This activity level I am sure varies greatly from one coast to the other.

If you want to sell now, then sell....don't worry about where the market is going. Everyone can be a Monday morning quarterback with real estate. Do what works best for you now.
Good luck with your move!
Debbie
0 votes
John Wirsing, Agent, Pepper Pike, OH
Mon May 11, 2009
Lisa-
My own belief is that the market is getting STRONGER!
The stimulus package is kicking doors open for the 1st time home buyers. This is having a major impact on the entry level homes. As these disappear from the market, move-up buyers are free to find their step-up homes.
In March, 839 homes sold in Cuyahoga county. That compares to 535 in February. More importantly, 1996 homes went into pending status in March.
In evaluating your situation, its good to consider the entire real estate scene. Take into account the super mortgage rates that are out there today.
As a Cleveland area Realtor, I have a program that saves people exactly like you thousands of dollars when they list their home with me and then use me as their Realtor when they buy their new home. Give me a call at 440-487-2193 or drop me an e-mail at jwirsing@kw.com and I would be happy to provide you more information on my "Round-trip Loyalty Bonus".
Sincerely,
John Wirsing
Realtor
Keller Williams Realty Greater Cleveland
0 votes
Joy Sinegar, , Chicago, IL
Mon May 11, 2009
I think that the market will definitely bottom out before it will have an upswing. With the factors (unemployment, etc) still prevalent, we will have a housing market decline as long as the negative factors remain.
0 votes
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