The Bottom? I suppose your guess is as good as mine. The only way to know if you have ‘hit’ the bottom in the real estate market is when it begins to rise again. There definitley has been a boost in sales as many of the foreclosures and short sale properties are selling. Even new homes sales are increasing slightly. The interest rates remain historically low, the inventory is shrinking and first time home buyers cashing in on the opportunity to own by taking advantage of the first time home buyer $8,000 tax credit. This sounds good and we are definitely moving in the right direction but the recovery will probably be slow.
So what are the real estate ‘goo-roos’ and ‘experts’ saying?
Federal Reserve Chairman Ben Bernanke said May 5th that the economy appeared to be stabilizing, but warned that a real recovery is still months away.
The Cromford Report: stats report “Current Pending sales are the highest ever recorded-let’s say that again the HIGHEST EVER RECORDED yes that includes 2004 and 2005.”
A May 2009 ASU study indicates that there is a glimmer of hope that house prices are getting close to the bottom.
The good news is that many of the short sales and foreclosures are finally being removed from the market which is slowly encouraging non-stressed property owners to begin to list their homes for sale. Bottom or bottom line, due to the drop in home values over the past year+, it is still a good time to purchase a property here in the Valley of the Sun.
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Gary and Claudia Scott, realtors
