It shouldn’t surprise me by now but it still does. The power of suggestion coupled with the choke-hold that the media has on the public collective consciousness. This rings true on just about any topic…but of course I’m a little more focused on real estate than other areas of discussion. The sky is NOT falling. I’m wondering what it will take to convince some people of that? The market is OK and getting better. But good news doesn’t sell newspapers. And the Nightly Evening News without stories that make people concerned about their own well-being don’t attract viewers. So I know we will never get any positive news with the same bravado that the negative news has been given.
Most Buyers who are looking for a home in a certain area, when given the facts about recent comparable sales there, understand the market dynamics. But I still run into Buyers that think the real estate market in general is moving closer to deaths door no matter what evidence you produce…and that every Seller either is, or should be having a fire-sale with deep discounts. That just is not the case. For most Sellers around here, market values have been a little flat for the last year or two. It is true that on a case-by-case basis, some properties have sold for discounts but there have not been any wholesale across the board discounts. Some have even risen in value. It all depends on the specific home, neighborhood, and the Sellers circumstances for wanting to sell. Those Sellers that MUST sell no matter what have sometimes had to offer discounts, especially in homes in the upper price ranges. The entire market is clouded by stories of these in the media. But there has not been a substantial devaluing of properties in our area as some believe.
I figure the best thing to do is just keep telling the truth about it…which is: If you are a Seller, it’s a great time to sell. Inventories are down from previous levels, so there is less competition. If your home is in good condition and priced right, it should sell. And if you are a Buyer, selection is still very good and interest rates are unbelievable. Last time I checked, a 30 year/fixed rate loan was 5.125%. Competition for homes that are in price ranges that first-time-buyers are attracted to is heating up though as the Government Incentive-$8,000 Tax Credit deadline of November 30th looms closer. If someone is a first-time buyer or has not owned a home in the last 3 years, and interested in taking advantage of the incentive, then they really should get their purchase under contract by no later the midde of October.
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