Coldwell Banker Residential Brokerage

May 20, 2008 – The media’s continual negative reports about the real estate and mortgage markets cause many real state buyers and sellers to be uneasy right now. Just as with the stock market where savvy investors can turn either an up or down market to their advantage, real estate has opportunities in both an appreciating and a depreciating market. Think of uyers in the last very hot appreciating market where they had to compete with other buyers for scarce properties by paying prices well over the list price and in some cases even electing to waive the right to have a critical home inspection. However, today’s buyers have excellent choices among many properties with opportunities to secure homes at much lower prices and with very reasonable interest rates.

Lower prices may not sound good to sellers, but for two groups of sellers, this depreciating market is an advantage. Those who buy right after selling their property for a lower price, benefit from buying the next home for a lower price. And, if the value of the home purchased is higher than the one sold, they save even more and gain an equity increase. The sellers who bought their property years earlier and gained equity during the appreciating market who sell now, though not at prices obtained at the peak of the market, still have excellent equity growth compared to the original purchase price. Pricing a home to sell hoping to get “what might have been” if sold at the peak, will deter buyers from choosing that home instead of a correctly priced one.

The statistical data by area provided here can assist you making current decisions about the best time to act. If you see high number of properties on the market compared to current sales, you will know it’s a depreciating market. For buyers, and also sellers who in turn need to be buyers, this market may be to your advantage. If you would like to discuss the current market with me, please let me know.