In the past 6 years, almost universally, housing prices have dropped at least 30%. In many places (e.g. California, Nevada, Florida, etc.), and for many price ranges (e.g. high end), or types of properties (e.g. buildable land), the prices have dropped 50% and more. It is time to realize that the prices are already bargain values and-
buy instead of haggle!
Buyers beware! We have hard data which now documents that the market has turned and we have an improving/escalating market. 2012 saw a dramatic change in Buyer attitudes. Inventory which was high; it is now very low (see related article, “How Housing Inventory Affects Buyers”). The rate of sales (absorption) is now brisk and multiple offers have become common in some areas. Prices have stabilized and even increased in some markets. Interest rates are at historic lows (e.g. 3.1% on 30 year fixed loan in the fall of 2012). This is not speculative forecasting, it is reality.
Buyers who do not know this still act as if it is a buyer’s market and they can be aggressive and demanding. These will be the losers of our time because they could not read the signs of the times. Buyers are losing power quickly.
Randy McCreith, Principal Broker
Bella Casa Real Estate Group
Cell: 503-310-9147 Fax: 866-281-6653
Published on: Apr 8, 2013