Managing the Housing Market in 2011
Whether you are a Buyer, seller or industry professional there are important tools you need to still be standing when this evolves into the next up housing market. I have had the good fortune of experiencing several tough market cycles including the double digit interest rates if the 80’s, the Gulf war in the 90”s, the dot com bust and of course the housing market after 9/11. The Chinese have a double meaning for the word “crisis” which means danger and opportunity. Changing markets presents dangers for buyers, sellers and other professionals as we have seen with the mortgage meltdown, media reports sensationalizing the decline in the housing market and rise in loan defaults and foreclosures. On the other side of the coin has come tremendous opportunities for savvy buyers, sellers and investors. The overall key to success in today’s market is to decide which side of the coin you are on and plan your strategy. While it would be unwise to attempt to ignore or deny the facts of a changing market it is critical, it is equally unwise to just acquiesce to the dangers and not focus on and take adavtange of tremendous market opportunities
In order to survive the changing market you will need to drown out the propaganda, hype and myths about the housing market.
If you are buyer seeking a home loan, do your homework. Eventhough some lenders have gone through their own changes there are still good financing options available to qualified buyers. The credit standards tighten as they do in any changing market, but the t options are there.
There is a definite an increase in the supply of available homes. But sellers with well priced properties who are motivated are moving their homes. The Key here is finding sellers who are reasonable in their pricing and motivated. Homes that are sitting sometimes are the result of sellers trying to get a value which is not there. But homes are selling everyday. There even still multiple offers situations which does not get reported often and there many happy homebuyers who made the decision to but in today’s market.
Homes Most the stories you read about the housing market are mainly designed to get your attention in order to sell newspapers or boost news ratings. Bad news sells. Most media outlets never let the truth stand in the way of a good story. Bad news sells, good news does not sell well. Look for in-depth coverage of specific neighborhoods and housing sectors. This will give you a better sense of what to expect not a 2 min new story. If you are a buyer you have a tremendous opportunity to see a lot of homes in many areas and make an intelligent decision without pressure.
Whether you are Buyer, Seller or Industry Professional you need a specific plan for your situation to survive the changing market.