The perfect buyers market is at hand - but it will not last.
Existing home sales have plunged to a 25 year low. The National Association of Realtors reported sales of single-family homes and condominiums dropped by 2.2% in December of 2007 to a seasonally adjusted annual rate of 4.89 million units. Sales fell by 4.6% in the Northeast, 1.7% in the Midwest, 1% in the South and 2.1% in the West. Sales of single-family homes were down 13% and the median price for single-family homes dropped by 1.8% to $217,000. The chief economist for The National Association of Realtors suggested that this was likely the first decline in housing prices for an entire year since the Great Depression.
If you want to buy a home, is it time to act or time to wait? Do you expect prices to decline even more?
ATTENTION SHOPPERS: Now is time to take advantage of one of the best opportunities that we have seen in decades – yes, decades. Real estate is ON SALE now.
If you're considering purchasing a home, it seems hardly even imaginable that there could be a better time to do so. Interest rates are low and may even move lower. The supply of housing is abundant. Builders are offering great deals. And finally, after months of resistance to lowering prices or making concessions, sellers are dropping prices. Sellers of existing homes have come to the realization that they are going to have to relinquish more in negotiations in order to sell their homes. Yes, buyers are now fully in the driver's seat. In addition, while home foreclosures are unfortunate, they present unprecedented opportunities for buyers who are prepared to purchase.
In many ways the housing market is similar to the stock market. We need to react in a similar fashion to its cyclical nature. Attempting to time either market is incredibly difficult. But it is much easy to know when the market is down - and it is down now.
In fact, it may even be better to purchase prior to the bottoming out in the market. Why? Because once the bottoming occurs there is a clear and definite power shift from the buyers back to the sellers. In a bottomed out market, that shift in power is similar to what occurs at the top of the market but in the opposite direction.
That's why, in hindsight, we can see many examples of sellers who sold just prior to the market peak who had amazing leverage with their buyers. They were able to drive the very toughest bargains for their own advantage. They maximized their selling advantage. Now it’s the buyers’ turn to be tough before the tide changes once again.
Is this the bottom? No one knows. Are we close? Probably. Is this an outstanding time to buy... you bet.
It is time to buy!
Chris DeLoach
House Plan Realty - Charleston
843-388-7027