2012 Real Estate Forecast…What to Do?
Thursday, December 8th, 2011I am fortunate to have a view of the real estate market which most folks just don’t have. I sell many homes each year and talk to mortgage lenders, buyers, sellers, home inspectors, stagers, contractors and so many others connected in some fashion to the housing market. In my conversations we discuss the current state of the market as well as their prediction or feel for the future based on their client’s comments and views of the present health of our local real estate market as well as the expectations for the future. I want to share those views with you, the reader, so you can make plans for your home sale when the time is right for you. Also, you can share this information with your children and grandchildren who may be on the sidelines waiting for the right time to jump into the housing market for their very first purchase.
The overwhelming sentiment is that we will not see appreciable appreciation of our single family homes for another two to three years. But the good news is that price depreciation is slowing down to a single digit decline and moving towards stabilization. That is very good news, as prices have fallen since 2006. That has been a 5 year fall in home values for an average decline of 20-40%, depending on location. Inventory of homes for sale is also falling which is a sign of recovery. Therefore, do we wait for that moment when we know the bottom is here and prices are on the rise? My experience shows me that (more…)
