So many of us are wondering what direction the real estate market will go. Will prices rise, will prices fall? Will foreclosures increase or will they decrease? When will the market stabilize and when will prices recover?

The answers to all of these questions are the same…who knows! Pundits are all over the place as to sales of existing homes in our area. Most agree that it will be 3-5 years before we see equilibrium as to numbers of buyers and sellers. That is the point where values may be more predictable and possibly rise with inflation (1-3% depending on economics at that time). We do however have total control as to how we choose to perceive the market!

If we accept the fact that homes will always sell for what the market supports, in this case what buyers will pay, then we can make peace with where we are today, not tomorrow or 10 years from now. In most areas, properties have adjusted downward by 15-30% on average from prices in 2005-6. I do market estimates in the four county Milwaukee-Metro area. When I am finished with the estimate of value, most sellers thought their home was worth about 10% more than the current market offers. That is normal. We can accept reality that we feel comfortable with, and no more.

If we instead, accept market prices where they truly are, and not where we would like them to be, then make plans based on that figure, you may find that your plans to purchase or move into an apartment or community will work just fine with net dollars you receive. Try to keep in mind what (more…)

We all are anxious about our present as well as our future. Wouldn’t it be nice to have that crystal ball that would give us some clues as to what our economy will look like next year and beyond! Since no reliable indicator exists, we can only depend on the so called “pundits” who profess to know more than most, but their results are mixed. I am going to take a stab at my own predictions of next year’s real estate market with the risk of missing the mark a bit and having you, the reader, remind me of my well intended attempt! My picture of next year’s market is based on many conversations with banks, appraisers, home owners, buyers and sellers. I have 32 years as a full-time Realtor providing a good base for my insights into 2010’s housing environment. So here goes:

I believe that our economy is not out of the woods, but it is gaining some footing. Americans are feeling that (more…)