When will YOUR real estate market recover ?
July 1, 2008
Great article about when will your real estate market recover? A couple highlights that will be touched on here are: First thing they recommend is what almost everyone already knows: real estate is local. Compare the information for what your market is doing locally, and then see how it fares relative to the national real estate perspective. Another item they cover is economics 101 which is: supply and demand. Find what the rate of absorption is for your area (i.e. how fast homes for sale are selling) which will tell you how quickly the homes that are coming on the market, are going off. Then, see how many homes for sale there are that are currently on the market. Take the homes for sale that is currently on the market, and divide it by the rate of sale - and that will tell you many months/years it would take to sell all of the homes on the market if no new inventory came on. Generally speaking, if there is more than 3-4 months of inventory on the market, its usually a buyers market. If there’s less, its usually a sellers market. The further out you go, the more strong that particular real estate market becomes.
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Real Estate Quote of the Week
"I often hear remarks from agents like, “the bank sold that house really cheap - 30% below market value”. I don’t agree with that kind of statement. If various banks are the only sellers selling in an area and they are selling all of their houses at a perceived “below market” sales price - perhaps that IS the market for that product in that area. A good price fixes any of the various bad conditions. There is no good reason to take (or keep) a listing that isn’t going to sell."
Russell Shaw - in AgentGenius from Phoenix AZPolls
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