A Rare Economic Time
By: Diane Tuman, Zillow Content Manager | April 9, 2008
Today’s Wiki Wednesday Feature: A Rare Economic Time — Low Rates and Low Prices
Regardless of how bad the real estate market is for people who are selling — or, trying to sell their homes — the flip side is that buyers are in the catbird seat, shopping and choosing homes with the confidence of a wheeling and dealing Donald Trump. But, are buyers confident and are they wheeling and dealing? Today’s Wiki Wednesday featured article “A Rare Economic Time — Low Prices and Low Rates” by Aliza Dash of Ford Realty in Brookline, doesn’t necessarily tell you how to do something, but her article does offer the flip side of what is good about these anxious times. Yes, the market is bad for some, but very good for others. That is, if you have the means to buy. Do you have some dough stuffed under your mattress that you’ve been saving just for this very occasion? If so, what’s stopping you?
The rates are staying low and there’s an abundance of homes out there, but many buyers are holding off. Here in Seattle, according to the Seattle P-I, listings increased 61 percent from 2007, but buyers are waiting for the ultimate bottom to happen. It’s hard to know when the bottom will occur, especially when homes across the nation are getting pummeled at different levels and the prices keep going lower and lower. Florida and California are taking the brunt of it.
One real estate aficionado says to wait until year-over-year inventories have decreased for 3 consecutive months. That sounds like a pretty good rule of thumb. Any others?
Ed: Wiki Wednesdays is a weekly feature that highlights helpful or interesting articles from the Real Estate Guide.
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Rob @ Real Estate Chocolate - Ridgefield, CT Real Estate on April 12, 2008 6:30 pm
Diane is so right. This is a great time to trade up for all the same reasons.
Many sellers are feeling the pain of listing their home in this difficult market but for all the pain they feel on the sell side, they will more than make up for it on the buy side if they are trading up to a larger, better, more expensive house.
Trade up now or you’ll be sorry you didn’t.
Steven & Tascha Katz on April 14, 2008 2:33 pm
This is a great article and so true. Sellers have to realize that even though they might not get top dollar for their home they will usually more than offset the amount they could have sold their home for in a sellers market on the purchase of their next home. Buyers are really getting great deals now and while it always hurts not getting top dollar for your current home, it is ok because of the bargin on the buying side.
If it was a sellers market, as it was a few years ago, yes the seller may get a great price when selling their home but they would have also paid more for their next home.(then they would pay now) So it all works out in the long run!
Panic Party: You’re Invited (and Bring a Friend) | Redfin Orange County Sweet Digs on April 15, 2008 6:21 am
[...] there are a few shiny ones among the bunch. The vast majority of people do believe this is a good market for homebuyers. The number of homeowners with adjustable rate mortgages has shrunk by half. While the general [...]