Great news to finally hear about how the market ended in 2011. Home sales for the last month of the year reached their highest mark in 12 months. While this certainly led to a great start in January, we are certainly not where we want the real estate market to be.
So what still needs to happen? Time
The last three months of the 2011 all saw increases in sales and overall 2011 was much better than 2010. Prices are remarkably low and mortgage rates have never been lower. It is still going to take time to get the market to where it needs to be.
What does this mean for buyers? Buy Now
Everyone wants to time the market just right. Buy low and sell high. The problem is, no one knows when the market is at the lowest or highest point until after it starts moving in the opposite direction. From teh reports and statistics, the market has been on the way to recovery for some time now. As the market recovers, so do the prices (great for sellers, not so much for buyers) as well as the interest rates. With more people applying for loans, the more the average rate will go up to meet the increased demand.
If you are a first time home buyer, there are an abundance of great deals right now that you will not be able to get down the road. This is due in large part to the influx of foreclosures that have hit the market in the last 2 years which not only themselves are at low prices, but lower the prices of privately owned homes in the same areas.
What does this mean for sellers? Get your house in order
When home prices start to rise, those buyers that have been waiting on the sidelines will start look to make their move. Now, you can wait a few more years till the market will fully recover or you can get ready to sell your home while the buyers are out hunting. Spring has traditionally been the best time to list your home. All those people who did not want to search for a new home in the winter, will now be out looking. It also helps to see a little green in the yard for curb appeal.
Dan Brassil
St. Louis Real Estate Agent
Leave a Reply