It seems the spin-doctors, pundits and gurus of real estate news are suddenly trying to upstage each other with shocking articles about how the market is suddenly in recovery mode. Well... at least this is what you might think by reading just the headlines like "HOUSING MARKET REBOUND SEEN IN 2012".
At least for our local market, I can attest that there are some very definite signs that we may have finally found the bottom of value freefall that property owners have suffered for the last several years. The inventory of homes for sale has shrunken significantly, and actual sale prices appear to be holding rather than falling more.
However, several relevant factors need to be considered:
The very tight credit lending criteria buyers must meet to qualify today has prevented many from purchasing, so the very attractive interest rates has not helped many. Thus the number of qualified buyers remains static, meaning an increase in sales shouldn't be expected until something changes in lending policies, or the gradual improvent of consumer credit worthiness.
Additionally, there are still a tremendous number of households still 'underwater', those who have already defaulted and those that will, whether by lack of alternatives or by a planned 'strategic default'. The backlog of foreclosed homes that bank have yet to unleash onto the market is daunting, and will negatively impact price increases for some time to come.
So, the good news is OUR LOCAL REAL ESTATE MARKET IS IN THE EARLY STAGES OF RECOVERY. The bad news is, IT WILL BE A LONG, SLOW ROAD TO A 'NORMAL MARKET', and many more before Sellers can expect boom values again.
Life is short, move on with your real estate needs. Don't wait for boom prices to return to make your real estate moves...you may not need to by then!
EXIT Realty Expertise represents Buyers, Sellers, Landlords and Tenants in the Fredericksburg, King George, Stafford, Spotsylvania, Westmoreland, Caroline, Dahlgren, Colonial Beach, Montross, Northern Neck Virginia Region and La Plata, Waldorf and Southern Maryland. 540-775-6555