How is the market doing?

How is the market doing?

I get asked this question multiple times a day and honestly have struggled with how to answer it.  It is misleading to make a blanket statement such as, “the market is good” or “the market is bad.”  The market today cannot be described in just one sentence – I find that a five minute conversation works much better to get an accurate picture.

One client told me jokingly, “Oh, you realtors will never say that the market is getting worse.”  They assume that if we “tell it like it is” people will be less likely to buy.  I disagree.

Here is the simplest answer I can give.  If you are looking to buy real estate  NOW is the time to buy! If you want to sell real estate, NOW is the time to sell!  Let me explain.

For buyers, here are the reasons to buy:

1. We are officially in a “double dip” real estate value market for 2011.  In other words, average prices have dropped for a second time.  It is VERY likely that we are now at or approaching the bottom of the market.  Also due to the continual drop in prices, it is even more affordable to buy a house.  CMK and Associates Real Estate has experienced agents who can help you with  your next purchase.
2. Interest rates are at historic lows.  Since most buyers are borrowing money to be able to purchase, the cost of borrowing money can greatly change the monthly payment.  This can lower the monthly payments by hundreds of dollars and change the actual price paid by tens of thousands of dollars over the thirty years.
3. There are a variety of properties for sale.  Since there is a high inventory, you do not have just one or two places to view.  Many times there are 10 or more properties that may interest a buyer. CMK and Associates Real Estate has over 250 properties listed for sale.
4. Most buyers plan on owning a property for at least 5 to 10 years before reselling. Since the market is so low now, it is highly likely that in 5 or 10 years the market will have rebounded and you will stand to make a profit on your investment.  If you wanted to buy and then sell within a year, then this may not be the best time to buy. However, most buyers plan on owning their property for at least 5 or more years.

For sellers, here are the reasons to sell:

1. There is still plenty of demand! A house priced right will sell within a reasonable marketing time.  You do not need to assume that your property will take years to sell.  Price it right and it will sell.  CMK and Associates Real Estate sold 17.8 million in volume in 2010 and we are on track to sell 25 million in 2011.
2. If you are planning on selling and then buying, the value difference should be irrelevant.  In other words, you might have to sell for less, but then you can buy for less. If you wait for the market to return to sell your property, you may have to pay that much more for the property you want to buy.  CMK can get your property sold and help you find the perfect place.
3. Waiting for the market to change could cost you more than the increase in value. Many sellers plan on waiting for the market to return to sell or upgrade. However, this may not be a wise financial strategy.  The cost of staying in your home (taxes, maintenance etc.) may easily far out way an increase in value in the long term.  If you need to sell in the next two years, it is unlikely the market will be much better in two years.  Ask yourself, do I want to wait 5 years for a higher value?  That higher value can easily be used up in the carrying costs of the property you own. CMK and Associates Real Estate has the reputation for understanding the market to give our clients the knowledge they need to make the right choice.

CMK and Associates Real Estate is ready to serve you with your real estate needs.  Our agents are highly trained professionals that understand the market and can assist you in buying or selling.  Call or stop by one of our offices today or call one of our agents.