I get asked regularly "How's the market?".
My answer is usually the same. "It depends on whether you're selling or buying." Let's examine that a bit further.
If you're selling, then you already know that it's a different market than just a couple of years ago. If you see my earlier post on August market statistics, you'll see a visual depiction of the decline in the market. There is a glut of homes for sale on the market, many of which will be your direct competition when you're selling. There are also plenty of national articles on the impact on prices for homes.
But, if you're buying, well....it's a different story! In fact, we may be experiencing a Once in a Lifetime opportunity! Let me explain.
First, you've already read the national articles about declining prices for homes. In our area - the general Washtenaw County area - prices are down about 10% from last year. There has also been a huge impact on builders.
Second, interest rates are still at incredibly low levels historically. Your buying power hasn't been this good in our lifetime!
Third, you have the luxury of time on your side. During the most recent Seller's market, the competition from other buyers meant that you had to decide on a house as soon as it came on the market. If you waited, the home would sell to another eager buyer. But today, you have so many homes to choose from, you can see lots of homes, then boil the list down to the top 5 to go visit again, then boil the list down to your top two, and negotiate confidently with either home seller, knowing that you'll get a good deal, no matter what!
All in all, it's a great time to buy a home!
If you've ever given thought to owning investment property, now is a great time buy. With the challenges in the mortgage market due to "sub prime" mortgages, many of those home buyers have turned back into renters. There are many, many tenants out there looking for a home or apartment to rent. You can buy a great single-family home, or a duplex, at today's prices, and rent it out for many years to come. You'll be glad you did! Just ask me!