Monday, May 9, 2011

Home Values Drop

When we started looking for a new house in the summer of 2010 and failed to find one, concerned friends asked if we were worried about the market rising in 2011. They worried we would lose out on the best values and interest rates.

We were only slightly concerned. We felt that at best, the Spring Market would bring slightly higher (1-3%) housing prices and interest rates, but given the overall sluggish economic recovery and the vast inventory of foreclosed houses that had yet to come on the market, we wouldn't be hurt by waiting.

Plus, at least in our area, many sellers initially list their homes hoping for the best, which is a nice way of saying they think it's 2006. Ultimately, they get a reality slap, and 3-6 months later they lower their prices by 20% or so and then sell within weeks. So, the houses we saw last fall and felt were overpriced? Based on their closing times and prices--we were right.

We're feeling good that we waited, but now some forecasters think the we haven't hit bottom yet, and that the housing market's lowest dip will actually take place in 2012. Yikes.

No comments:

Post a Comment

Don't be reluctant. Say hi and share your thoughts.