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Have Prices Really Hit Bottom?

Brooke Wolford

By Brooke Wolford

Most have us have been hearing lately that prices have hit bottom.  If you are like me, you are almost scared to say it. I say it quietly, so if I am wrong, maybe nobody will hear me.

Many of us have been nervous to say anything.  Looking back over the past several years, how many times did we hear “it will happen”?  Then some statistic would come out that would shoot that idea completely out of the water.

What I can say is this: My average sale price in 2011 was around $90K.  I had many buyers looking at homes in this general price range.  I still do in 2012.  What is different in my market this year is that I have hardly any inventory to show them. Just today I looked on behalf of a client seeking a single family home under $100K.  In the city they were looking, only six out of 42 listings were not pending or contingent.  If you are lucky enough to get your clients to offer on one of the few properties left, you end up in multiple offers.

I am a believer in numbers.  To me, they do not lie.  In my four years as an agent, I have never seen it like this.  I can’t speak for every market, but I am feelin’ it here in Minneapolis/St. Paul.

If the conditions are similar in your market, get the word out.  It’s time to sell!  The time has never been better to go after those listings. Please! I need some more houses to show my buyers!

Brooke Wolford is a real estate practitioner with Coldwell Banker Burnet in Woodbury, Minn.  Follow her blog at adventuresinrookierealestate.com.

Comments
  1. My fear at them moment is that there is more shadow inventory than we know about sitting waiting to hit the market. If that happens, it is definitely two steps back. Maybe by the time it happens we’ll have people with good credit or some cash saved up to buy the inventory that hits so it won’t be such a blow to the progress we’ve made.

  2. In Minneapolis/St. Paul, MN I believe they have, which is why I did the blog post: The Twin Cities Housing Market Has Bottomed. The market fundamentals have really turned a corner in the last 6 months and seems to only improve further this year.

  3. This market is supported on all-four corners by the government and there programs from low-rates, housing assitance, HARP, HARP 2.0, etc. The largest amount of support is the government allowing banks to keep homes that are in foreclosure on the books. If the banks were to go through the formal foreclosrue process on every non-performing loan they have on the books they would have to also take the “write-down” as well and thereby they would all be insolvent.

    They can’t continue this charade forever. At some point they will have to start unloading these non-performing loans and we’ll be seeking a new bottom.

    Let’s face it until we stop playing games and let the market find it’s natural bottom we cannot begin an earnest recovery in the economy.

  4. Our all cash buyers are competing with 10- 20 other all-cash buyers on every offer we write. It is even harder to get offers accepted when buyers have loans.

  5. It is very interesting how markets are so different. Homes in Las Cruces New Mexico have an absorption rate of 72 weeks. I don’t think we need more listings over all, I just need a bigger market share of Las Cruces real estate. Okay then, I am going after expired’s.

  6. Very well said Cary, I try not to listen to the voices of Doom.
    I certainly pray this is not the case, but this flickering light at the end of the tunnel may be the train.
    Lets not forget what and who put us in this situation in the first place!
    Big Changes in our government leadership in November is the only answer (in my opinion). We have to have some one at the helm, that is unafraid, to see the truth and act on it by making the tough decisions to get us to the real bottom (if this is not it) so we can start the rebuilding process.

    In Brooke’s post she stated “In my four years as an agent, I have never seen it like this”. Neither have I, in 21 years, Brooke!

    Political Correctness and Government give away programs have crippled our country. (again my opinion)

    Here’s a lesson and quote for our government.

    “You create the desire in people to want what it is that we have. (housing)
    You don’t give it to them! Because, if you give it to them, and then, they lose it.
    They hate you for it. You show them how to earn it.”

  7. The concept of “shadow inventory” is interesting! I hadn’t thought about it really. I mean we know that potential sellers, especially in this market in Okoboji Iowa, wait for Spring/Summer to list their homes so you expect an increase in inventory. One thing for certain is that, buyers are plentifull.

    Very excited for what’s to come this Spring/Summer here on the Lakes of West Okoboji and East Okoboji!! Come visit!!! Would love to show you around!

    Wishing you all great success in this coming Spring & Summer!

    Lynn

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