Real Estate Market Update

There is an old saying about worrying…something like “90% of all the stuff you worry about never happens, and 5% of what’s left you can’t do anything about anyway.” Life is probably not that simple, but the general theory here is to lighten up a little about the future. Yes, it’s good to plan and be prepared, but let’s not get so concerned about what may happen that we become paralyzed by our own analysis.

At the beginning of any New Year, the same can be said regarding the real estate market. With the changing of the calendar, there is no shortage of “experts” who are totally prepared to tell us all what the future holds. Each voice is certain they have the correct vision of what is to come for 2007. Some are right and some are wrong, but regardless, these experts stir the pot until it is almost impossible to have a clue about anything. Too many opinions, too many interpretations, and in the end, the only consensus is the confusion they all leave behind. Predictions about our housing future may sound good for the media, but sometimes they come at the expense of accuracy.

Therefore, I will fight the desire to add my own personal thoughts to the 2007 mix…and will instead focus on the present…since that’s where most of us hang out anyway.

For Buyers, in a nutshell, what are you waiting for? I realize it is now popular for the “experts” to tell you to wait for the market to bottom out sometime this year, but good luck trying to figure out when that event will occur. Most of the time, history has shown that the only way to know when you are at the bottom of a real estate market is to look back to see when you missed it. There will be no billboards announcing the absolute rock bottom, and no universal sign saying now is the time to buy. You will simply start attending social functions where everyone will be talking about what price they could have bought a home for in 2007, and how they wish they had taken advantage of the market then, instead of trying to
“time-it-just-right”. Remember, to maximize your position, you need to buy when others are selling, and sell when others are buying. All I know is that in the last 10 years, every person who purchased a home would have loved to have bought their home at the prices of 2-3 years prior. Does anyone really think that in 2010 or 2012, they would be unhappy with the price they paid in 2007?For Sellers, I’d love to have a quarter for every time some entity…newspaper, TV, magazine, radio, etc…announces to their fan base that the real estate market is bad, sellers are in trouble, and that we are all destined for financial oblivion. For sure, I would have a lot of quarters to spend…but let’s look deeper into those negative statements that seem so popular now.

A bad real estate market is characterized by one or more of the following: 1) High interest rates that make purchasing a home extremely difficult, 2) A horrible economy that is eliminating jobs in our local area, or 3) a massive influx of bank repossessions that represent such a high percentage of our market place that a normal seller cannot compete…and none of the above are happening. Rates are terrific, the economy is good, and repossessions are sexy for reporting, but still represent such a small portion of our market that they are almost negligible. While our market for sellers is not the “out-of-control-super-frenzied” market of a few years ago, it is solid, and it is working. We sell houses every day for our clients. The only caveat for a seller is the following: be serious, be logical, and be fair about pricing your home. That is not code for “give it away”. All that means is that you must be reasonable about pricing your home. You may get a little more than your neighbor, or you may get a little less…it depends on where you live and what is for sale at the moment. But you will not have to give your home away to get it sold.

In the end, our local real estate market falls under the 5% of life we can’t control anyway, so it’s going to do what it’s going to do. But here at Westcoe, we take a realistically positive approach to how we can help our clients. It seems to have worked well for the past 21 years, and 2007 will be no different. Take heart, not everyone believes the real estate sky is falling.

Take care, and always, I am only a phone call away to assist you with any real estate questions or needs you may have.