2014 has been a bit of a stalemate for buyers and sellers. The low inventory of 2013 fueled price increases to this point of last year. Coming into 2014 inventory came back as sellers expected to sell at or above their breakeven points. Unfortunately for them, the buyers were smarter than that. Transactionally, it has been a slow year since sellers proved to be as “dug in” as buyers were on price. The signs just stayed up and the “days on market” grew.
Going forward we should expect things to speed up. Real sellers will be the remainder as those who were experimenting cool their heels. Buyer’s will come around as they know that these interest rates will be back to regular economic equilibrium as the Fed starts letting natural forces dictate.
What is really good news is that the roller coaster is over. (Real Estate is Back). Homeownership is an investment in the future (as in 10+ years from now opposed to flipping in 90 days.) We can expect our limited commodity to be priced based on supply and demand and we all know the government is unable to print more real estate. Real Estate has no books to be cooked (unless its packaged as a mortgage backed security instrument…lol)
Here’s my prescription: Buy (negotiate the best price) and Hold.
Bob Bodemer, REMAX Elite Team Bre 01324558