Market Predictions
Everyone has their own opinion on where the
market is going. There are many facts that can give us clues to where
things are headed, but there are also many factors that are yet to be known
that will also have an impact. Many people saw this downturn coming,
but many didn't foresee such a fast and dramatic fall. We certainly
understand your dilemma and confusion in today’s market. These are uncertain
times for both buyers and sellers - BUT things are changing now.
Being “in the field” everyday we talk to
buyers, sellers, investors, home owners, renters and other Realtors. We read
real estate news from the Arizona Association of Realtors (AAR), the National
Association of Realtors (NAR), and other real estate related organizations. We listen to media reports about the housing
market. We attending continuing education seminars and preview a large number
of properties to stay informed about local inventory. We do this so we can have
the big picture in my mind about the national and local economy and how it
relates to the local real estate market.
As I have said before, everyone’s situation
is different and whether or not you should buy or sell depends on your personal
situation. As a Real Estate Consultants, we are here to help you evaluate your
personal situation and see how it fits into the overall “big picture” of the
real estate market. For some people, it may not be a good time to buy or sell.
But for others, opportunity knocks.
Yes, the future is uncertain. If we had a
crystal ball, we’d be rich. The best proven approach for real estate investing
is to buy low and hold. Buy low doesn’t necessarily mean wait until that point
in time when the market has hit its lowest point. How will you know when that
is? When everyone else knows too? Then it won’t be a time of opportunity. Buy
low means get the best possible price in the current market. If I could find
you a property priced below market where the Seller is willing to negotiate
incentives, then that would be a good buy in this market. If you hold it for
more than three to five years, you will see appreciation.
Everyone’s personal situation is different
and every home for sale offers different opportunities for negotiation of
price, terms and conditions depending on the seller’s personal situation and
motivation. There are opportunities out there and if you plan on living in the
home more than 3-5 years, what the market does next month or next year won’t
really affect you. You will be living in the home you want and enjoying it for
years to come and the market will go up again.
Real estate is cyclical. It goes up and it
comes down. Just how much it will go down with this correction is still to be
seen. We have already experienced a 25-30% drop locally - more than
anyone ever anticipated. We currently have low inventory, a low rate of
foreclosures and affordability levels in check. Now is the time to
buy here.
If you have to sell in this market, there
are a lot of marketing strategies that can be used to attract buyers. Price
plays an important role, but offering up front buyer incentives can sometimes
attract those buyers who need a little help. Making your house both visually
and financially appealing to buyers will set you apart from all the
competition. As your Real Estate Consultants we can guide you through the
selling process to bring you the greatest return, in the shortest amount of
time, with the most favorable terms. Ask us about my specialized
Marketing Plan.
Here are some interesting links to use as
resources when forming your own opinion of the market and how it relates to
your own circumstances.