Seeing The Market Through Rose Colored Glasses?

Watch on your mobile device >>

There has been a lot of activity in the marketplace lately and it has been nothing short of dramatic.  With mortgage company scandals, government programs, countless foreclosures and distressed properties going up then down and projected to go up again – who knows where we stand today?  But the truth is that after years of experience in the business, seasoned real estate professionals know when the market is truly ready for a turn-around versus when things are just stirring.

Things Seem To Be Improving But It’s Too Soon To Tell

Many people are under the false impression that the real estate market has taken a turn for the better after months of struggle.  Though there are definitely some positive signs – and with increased government incentive programs such as HARP loans or the newly introduced FHA fee reduction plan, things are getting better.

Still the market changing for the better does not indicate that we are in the midst of a full-blown recovery.  There is more to come and more to be weathered ahead since much of what we are experiencing these days is as a result of a seasonal push where sellers are seeing more success.  Quality properties – especially those that are secondary residences, resort properties or condos are receiving multiple offers.  In fact, buyers today are more motivated than ever before thanks to the phenomenally low interest rates still available.  This makes it a fantastic time to sell but it does not necessarily translate to the entire real estate industry’s recovery.

All Hope Is Not Lost – Sellers Gaining More Leverage

After months of struggle, in many markets sellers are finally gaining more leverage and enjoying a stronger position given buyers’ motivation levels.  Add to that the reduced inventory coupled with increased demand and it is seemingly a recipe for success.

Regardless of what it may seem however, there is still much inventory that lurks behind the shadows.  In fact, the industry terms it “shadow inventory” and though things will remain positive through the warmer months, when we return to cooler months we expect once again to see increased inventory on the market.  Recent settlements made between state and federal regulators over the 2010/2011 robo-signing scandal will mean that banks will likely seek to liquidate their assets.  We project a plethora of bank-owned properties to hit the market come fall season, which will slightly de-stabilize the market again.
~
Even though what we have been seeing are positive trends that seem to indicate upward motion in our marketplace, keep your eyes open for more to come.  In the meantime, if you are a seller it is strongly suggested to list your home now while there is heightened demand. For so many months we’ve been hearing that now is the time to buy but right now might be the perfect time to sell your properties.  Especially if you are looking at unloading your secondary, vacation home, resort residence or other such property. Keep in mind: diminished inventory = more demand.

At the end of the day there is no question that we are sensing there are some good things happening in the market and like many challenges, in time we will overcome this one too.