Buy Now or Wait?
Has the real estate market in your area
bottomed, or are there more price
declines to come?
Every person buying real estate would
like to catch the market at the bottom.
The two burning questions on almost
every buyer’s mind are: “Has the market
hit bottom yet?” and “Is this the best
time for me to buy?”
Most every senior bank executive is
extremely interested in what the market
is doing. The numbers the bankers are
most interested in seeing are the
absorption rates, how much the market is
increasing or decreasing on a monthly
basis, and what their holding costs will
be. These three numbers together help
the bank determine where it has to list
the property to obtain a quick sale and
minimize their losses. Buyers and
sellers are interested in these
statistics, so listing agents should
have this information available.
If you track absorption rates and
increases/decreases in the average price
per square foot, you will have a fairly
accurate gauge on what a local market
will do in a given price range for the
next 60 to 120 days. It’s not perfect by
any means, but it has been a
consistently accurate predictor of
whether prices will be trending up or
down six to twelve months from now.
As a buyer, you may not be familiar with
these terms, but they are very important
numbers in terms of your decision to buy
or wait in any given market.
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