A Q & A about the Current Quad City Real Estate Market

Going to get off the 19 Thruths with this post and address a bunch of questions I have been getting from my past, present and current clients….I have been flooded with confused people that do not understand whats going on out there in our LOCAL market.

I hope this helps.  If you have a specific question that is not addressed here, or you want me to elaborate further, please e-mail me at Matt@WoodSellsHomes.com.

_____________

One more quick note, I have updated the Tax Credit site detailing the specifids of the $8000 Tax credit.  Check it out and I have more to add including the actual IRS form you need to file, so check back early and often.  www.Home-BuyerTaxCredit.com  And tell all your first-time buye friends about it!

_____________

Now here’s the Q&A…

Q: I hear on the news that the housing market is really bad right now and it’s not a good time to sell my home.  Is that true or is that the media blowing it out of proportion?

A:  The main thing to remember is that real estate is very LOCAL.  All media outlets like to over-generalize everything in order to get ratings.  “If it Bleeds, it Leads,” is often the philosophy for most newspapers and news stations.  In saying that, there are many areas of the country that the market has crashed and getting worse, so it is not a falsehood.  In Florida and California for example, property values have dropped and some homes have lost $100,000 in value in the past few months. But that’s there not here.  We did not have the rapid appreciation that those areas had, thus our values have remained pretty stable.  As of early march, out list-to-sale ratio is still averaging 94-96% meaning that is you list your home for $100,000, you can still expect to get $94,000-$96,000 accepted offer on it depending on location and condition of the home.  The average days on market is longer than it was a few years ago, but the average sales price is not nearly as low as most believe.  As a general rule, if you have been in your current home at least 3 years, have not taken a home equity loan and owe more than you paid for it, and have made a few improvements to it, you will be in good shape when it time to sell.  Plus coming into the spring here in the Midwest, the market will be experiencing some increased activity.  I feel there is pent up buying demand due to our long, cold winter! 

 

Q:  I have been thinking of buying a home in the next couple months.  Should I wait or is the market still going down and will I get a better deal later when it “bottoms out.”

A:  Again, our LOCAL market is really not that bad as it is perceived to be.  Prices may be down a couple percent in some areas ONLY in comparison to a few years back when the market was overly active, but not compared to historical, long-term market statistics.  As to if the market is going to get worse, and “bottom out”…That’s anyone’s guess.  If you can predict when the bottom hits, or if we have hit bottom, you are hired as my chief economist and we can both get very rich running around town buying property at its ‘bottom’ and since you can predict the bottom, I am sure you can predict the “top” when it will be good for us to sell those very same properties we bought.  In all honesty, nobody knows.  Will it get worse and could you maybe save a couple bucks by waiting, maybe, but it could also very easily go the other way and you could be paying more a few months from now when all this pent up buying demand that I expect to happen begins, and everyone decides its time to buy. Being very straight-forward with you, and not just trying to be ‘salesmany’ on you, I think right now is a great time to buy!  Interest rates are at record lows, and there is lots to choose from out there.  Uneducated sellers (people who do not get this Q&A from me) perceive the market to be bad, and may be willing to give you a better deal.  And if you are a first-time buyer, there is even an $8000 extra incentive that I will address in the next question.  FREE MONEY!!

 

Q: What is this $8000 First-Time Home Buyer Tax credit and how does it affect me? 

A:  The government just passed this tax credit as part of the Stimulus package.  It gives first-time buyers an $8000 credit on their income tax return if you buy a home anytime in 2009, but it expires December 31, 2009.  I have set up an information website with everything you need to know at www.Home-BuyerTaxCredit.com.  It has all the forms you need plus, an easy to read chart! 

 

Q: Are there a ton of FORECLOSURES on the market now, where can I find them, and will I get rich buying one?

A:  Easily the most asked question I get daily, probably multiple times a day.  All spurred again by the major news outlets.  No, we do not have a bunch of foreclosures here locally, I can find them for you if you really want to look for them, and you will not get rich by finding and buying them.  There are a few ‘OK’ ones that I see now and then, but nothing to be too excited about.  Most are in questionable areas, in really bad shape (Have you seen the old movie ‘The Money Pit?’), and don’t represent a sound investment.  There may be more pop up as the year goes, but again, our market is not seeing the wave of foreclosures you see on the news.  But off the top of my head, I bet there has only been about a 10% increase in foreclosures compared to past years.  A little secret, if you are looking for an investment property, let me find you an Estate-A home where the family is selling it for a deceased relative. Usually these offer a better home, and many times, at a bargain price!!!  Foreclosures are fine, but there are better opportunities out there, in my opinion.  If you have an interest in picking up a rental, let me know!

 

 

Seacrh all homes at www.qcHomeBuyer.com 

 

Need to know your homes value?  Check out www.qcHomeSelling.com for a free over-the-net market value price evaulation!!

 

You can contact me directly at Matt@WoodSellsHomes.com