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There are three states that experience real estate market trends anywhere from six to twenty four months prior to the rest of us and those trends usually emulate the same thing that will end up happening in our markets. To understand what has been going on, we make an effort to explore those trends by connecting with the top real estate agents from those areas at a yearly coaching convention for top agents.
This year, we are seeing some interesting trends that point us in a positive direction; some that gives us hope and that will hopefully help us deal with the truth of our current state of the market.
This year, we are seeing some interesting trends that point us in a positive direction; some that gives us hope and that will hopefully help us deal with the truth of our current state of the market.
Short Sales An Up and Coming Trend That Continues
Based on our insight obtained from previous visits to the real estate coaching convention, we were able to be prepared in advance when short sales came to our neck of the woods. In 2008, when the first distress sales started to hit our area, we were ready for it. Using insight obtained from our colleagues’ experiences in other regions that had experienced the same phenomena before we did, we were able to develop systems that allowed us to manage short sales and distress sales efficiently and effectively. At the present time, we are experiencing an average of about five to ten percent of sales in our market being short sales.
Rock Bottom Hasn’t Hit Yet
While there is a promising future ahead, unfortunately there is still a fair amount of time that we need to go through before that rock bottom hits and things start turning around in a concrete, measurable way. The good news is that in Florida, one of the markets that precedes our own market’s activity, inventory levels are beginning to drop. Since Florida is about 2 years (24 months) ahead of us typically, this gives us something promising to look ahead to.
While there is a promising future ahead, unfortunately there is still a fair amount of time that we need to go through before that rock bottom hits and things start turning around in a concrete, measurable way. The good news is that in Florida, one of the markets that precedes our own market’s activity, inventory levels are beginning to drop. Since Florida is about 2 years (24 months) ahead of us typically, this gives us something promising to look ahead to.
Buyers Are Aware and They Are Everywhere
During this period of increased inventory levels, extremely low interest rates and fantastic low prices available, home buyers are on the rise and there continues to be an increase in buying activity. Not only that, there are many first time home buyers who are capitalizing on the benefits available out there to encourage first time home purchase, such as down payments as low as 3%, down payment assistance and other perks if financing is done through government backed programs such as FHA or local state agencies.
Moving On Up – To a Bigger and Better Place
Many existing homeowners are taking advantage of market conditions – once again, the low interest rates, low home prices and sizable inventory levels – to utilize their existing equity and move up into a better property. These are typically people who might have moved in a few years time anyway but realize that depreciation has not yet hit rock bottom so now is the best time to move into more house for about the same money.
Many existing homeowners are taking advantage of market conditions – once again, the low interest rates, low home prices and sizable inventory levels – to utilize their existing equity and move up into a better property. These are typically people who might have moved in a few years time anyway but realize that depreciation has not yet hit rock bottom so now is the best time to move into more house for about the same money.
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Throughout the next couple years, things will indeed fluctuate as the nation deals with the debt crisis, downturned economy, inflation and more. But many property owners are seizing opportunities that are out there and utilizing programs that are set up to help consumers get through some of these rough times. Depending on which side of the fence you are on, this is also the best time to be engaging in real estate transactions.
