Part #3 of a 19 part series giving you an inside look from my perspective as a Realtor working in the market every day.)
Note: I was going to cover the foreclosure market for #3 but I will catch that next week in #4. I thought this topic was more urgent at the moment.
Truth #3-You can NEVER time the real estate market perfectly.
What do I mean by that? I mean that you can never know if this is as low as its going to go when its bad.
Or whether if this is as high as its going to go when its good. And its all relative depending on where you are a buyer or seller anyway…
Currently its a buyer’s market–More sellers than there are buyers, making home prices fall and giving buyers the upper hand. But as a buyer, how do you know if this is the bottom or if the tide is going to swing the other way and the sellers will gain the advantage back and you will lose your chance to be in the stronger negotiating position. Once the pendulem swings back that way, then you are back with the ‘Herd’ who all want to buy and you will have to pay a premium price for the home that you could have gotten for 3-10% below list price just 30 days ago.
So the question once again, how do you know if this is the bottom if you are wearing buying shoes? Let’s say you are currently able to buy, but you think if you wait even longer you may get an even better deal.
Nobody knows, Not even me.
But once one buyer thinks that its time to buy again, another will, and another will, and then the rush is on. And then its a seller’s market before you knowit and you are competing for your dream home with 3 other couples, and then over $100 bucks, your dream home is gone.
Scary? Harsh? You think I am fibbing? I am not…I have been through the seller’s market and thats exactly what happens.
Is that going to happen soon? Maybe not, most likely not for a couple months when the weather warms up and all this government money is there for the taking and rates drop even lower. But I think it will turn, especially in that mid-range market of $100,000-$170,000. And when it turns, it will turn fast.
Be ready. Think harder about buying sooner than later if you can and can find a house that meets your needs. Don’t wait too much longer because remember you cannot time the market.
And who says that we just didn’t hit bottom yesterday????Hmmmmm….
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I have a few openings for the February application for my Platinum VIP Buyer program. E-mail me at Matt@WoodSellsHomes.com for details on how to receive an application to be accepted into the prgram that will give you the edge over any and all other home buyers out there.
Next time, Truth #4 on the Foreclosure market. For real this time.