ADVICE FOR BUYERS AND SELLERS
Thursday, July 1st, 2010 | Home Buying, Home Selling, Market News
BUYERS:
For better or worse, the tax credit is now history. That doesn’t mean
you don’t have opportunity. The combination of ample inventories and
continued low interest rates means conditions favor buying now even
without the credit. Heavy second quarter closings will likely reduce
inventories in the next three months, and interest rates will eventually
rise; we just don’t know exactly when, or by how much. Plus the general
economic news is improving. Remember the basic rule: real estate is a
long term, get rich slow investment. Those who buy now will be very glad
they did 5-10 years from now. Sale prices are still averaging 95-96% of
list price. A good house with a realistic seller is what you’re looking for.
SELLERS:
It will probably be a month or two before we really know what the
expiration of the tax credit means for true underlying demand. While
prices remain fi rm in general, you really have no choice but to assess as
accurately as you can what the immediate competition in your neighborhood
is, and position yourself in such a way as to make success
likely within your desired timeframe. The blizzard of new inventory that’s
recently come on the market should slow down as we move into summer.
After all the credit assisted closings have occurred at the end of June,
we’ll really know where we stand. Expect demand to look much like a year
ago in the second half of the year, but without the credit assisted boost
in the lower price ranges. If you’re not within 95% of a realistic selling
price, you’re probably still wasting your time.
(Stark Company, Realtors ~ Market Source Newsletter)
