Housing sales slide in 40 states
Decline of 36.1 percent in Nevada is biggest in United States
February 16, 2007
"Boom to Gloom"
In keeping with Newtonian physics what goes up, must come down. I have just read a good article on reviewjournal.com called, “REAL ESTATE: Housing sales slide in 40 states” that highlights this unfortunate fact. Well, unfortunate for those selling their home, and conversely, a boon for homebuyers. Real estate markets all across the nation are experiencing a drop in home prices and sales. In some cases, such as Nevada , markets have seen a decline of up to 36.1%. Nevada is representative of the biggest drop in home prices, other hard hit areas are, “ Florida , down 30.8 percent; Arizona, down 26.9 percent; and California , down 21.3 percent.”
Who is to blame for this? Everyone seems to be content with pointing the proverbial finger at home builders and shouting that if they had not saturated real estate markets with unnecessary inventory that this would not be happening. Sure, out of context, this may seem sound. However, did we really believe that record sales of new and existing homes could go on for five years in a row and then indefinitely? Now, I am not a Nobel Prize winning economist, but I don’t believe you need to be one to see that this just didn’t seem like a rational assumption. After all, what goes up must come down.
How will this affect you if you are a home seller? Well, now more than ever it is important to contact a real estate representative who is has extensive knowledge of your local real estate markets; someone who will guide you through the necessary preparation to ensure that your home will stand out in very competitive markets. The correct real estate agent can mean the difference between a fast, successful sale, and your home sitting on the market while prices continue to drop.
If you are buying a home right now, what this article is affirming is that many places across the country right now are “Buyer’s Markets”. A buyer’s market is when the number of homes on the market exceeds the number of qualified homebuyers. How does this affect homebuyers? Well, now sellers have to be more willing to reduce asking prices and in many cases offer incentives such as reducing interest rates by up to a percent, paying closing costs or even big screen televisions and cruise vacations. So be sure to hire an experienced buyer’s representative to ensure that you are not paying too much for your next home.
http://www.reviewjournal.com/lvrj_home/2007/Feb-16-Fri-2007/business/12628989.html
Enjoy, and thank you for allowing me to share my thoughts with you. Have a great week!
