A Once in a Life-Time Buyer's Market 2008 was a year some people want to forget. We were all negatively affected, directly or indirectly, by this economic tsunami. But in the business world and especially in real estate, hard times mean OPPORTUNITY.
Even more so today. The combination of falling home values and historically low interest rates is giving Buyers unprecedented purchasing power in 2009. But if you are thinking to wait for even lower rates, keep in mind this reality will not last for long- most economists expect rates to work their way up from here, and they already have started.
So we know now is a phenomenal time to buy, what about selling? Depending on the motivation of the owner, the market we are in creates a distinction between the owner who wants to sell Vs. the owner who NEEDS to sell. Take bank owned properties for example. Banks are in the money business, not real estate, and therefore pursue more aggressive pricing strategies to liquidate foreclosed properties as quickly as possible. Another great reason to sell is when upsizing is considered. If you are thinking about moving up the scale from a 200k home to a 400k home, you will ultimately end up with more money in your pocket because the price drop for the higher end home is based on a higher base amount. For instance, if a certain marketplace is experiencing a 10% decrease in values, the 200k home will lose 20k but the 400k will shed 40k, meaning a 20k savings right off the bat.
I can talk to you percentages all day long but the key is remains Perception. Case Shiller is a leading real estate trend indicator. A recent study suggests prices will hit the bottom of the bottom around November of 2010(!). This is good news for Buyers sitting on the fence, trying to improve credit, income, etc. This is not so good for sellers as they will lose a couple of hundred dollars every week by not pricing their property to sell now.
Something to think about... Your Partner in Achievement, Odelia Whether you are buying or selling a home, or just "thinking about it"- I invite you to contact me as I'd be happy to assist you with this important transaction. In addition, if you have any general questions about buying or selling real estate in the Philadelphia area, please contact me as I'm more than willing to help. Please browse my website for listings, reports and important local real estate information.
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