The news is confusing. Every article and every news report seem to contradict the previous report, and often times from the same sources just days or hours apart. The market is bottomed out, in free fall, prices are declining, prices are rising, home sales are up, home sales are worst on record, etc. It’s confusing and frustrating for home buyers, home sellers, home owners, and REALTORS.
The confusion of the market is evident in some of my recent dealings:
- I’ve seen buyers get into a frenzy about buying before the prices go up again.
- Multiple offers on short sale and bank properties.
- Home owner said, “now that the market is picked back up, I’d like to sell for $990k” (his home didn’t sell for $550k just a year ago).
- Extreme low ball offers from “investors” who think the bank should be happy to get any money at this point.
- Over list price offers.
The list could go on and on. Either way, there is one thing that I can state as true:
Short Sales are here, and will be here for some time!
Prices dropped in Florida by 30-50% and some 40%+ of home owners with a mortgage are upside down. On average, real estate prices increase only 2-3% per year in value…..that’s average over a long look back. Therefore, I have to believe that prices will take years before we get back to the 2006 values. Despite any positive housing news, real estate prices have a long ways to climb before we are out of this crater.
The good news, banks are accepting short sales. Banks are automating their processes for short selling, and are even recommending a short sale to their delinquent clients. These are huge steps forward in just a few years time. Further evidence that even the banks believe Short Sales will be here for quite some time.
Brad’s recent article: How to Short Sale
Short Sales are here, and will be here for quite some time, they are the new normal!
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