In a recent conversation with real estate expert/contributor Barbara Corcoran on the Today Show, the topic was “Is Spring Going to Be the Time Buy or Sell Real Estate?”
According to one economist, home prices fell 4.1% at the end of 2010. and said prices could plunge 15, 20, 25%. Is this doom’s day scenario realistic?
Barbara projects that this economist is dead wrong, “I don’t agree with it at all. If you look at the major markets in the U.S. over 100 markets, more than half have come off the bottom and prices are rising”.
Despite the number of foreclosure and short sale listings on the market, Barbara drew attention to the fact that interest rates are at comfortable and historic lows that are not going to be that way forever. She warns those that are trying to “time” the market perfectly, in that they may miss out by waiting too long. “Right now they are sitting on the sidelines because they are hearing from some of the economists that the prices are going lower… I think you’re playing with fire if you wait it out. even if you’re living in a marketplace with prices tumbling you have tremendous negotiating power. you could bid low, negotiate hard and ask for extras, provided you have the wherewithal or the personality to do it. remember, your market doesn’t ever stay low for long. once it turns, it turns quickly”.
With that said for Buyers, this is what she had to offer in terms of advice for Sellers…”If the prices are falling you want to price your home 5% less than the last similar house that sold”. She also pointed out that if you are selling in the same market you plan to buy within, for example, in order to “trade up” then you can’t lose because when prices/market values go up again, your gains are typically going to be greater on the better property.
While we wish we had that crystal ball, we don’t and sometimes it’s tough to take that leap of faith and move forward with buying or selling without knowing if we have really hit “bottom”. While no one knows for sure when we will reach bottom, we do know that the only way to know the bottom has been reached is when things go up again and usually by that time, you’ve missed the boat 🙁
If you are planning to explore the Lake Tahoe real estate market to see what today’s market values can get you, whether it be your first home, second home, vacation home or investment property, you can always begin your search of all Lake Tahoe listings at www.MakeTahoeMine.com – search CA or NV, and/or sign up to be notified of all new listings as they hit the market so that you are one of the first to know about a property that meets your wants and needs http://www.maketahoemine.com/email-notifications/
If you’ve been thinking of selling your Lake Tahoe property and are curious as to what your home is worth in today’s market, please click http://www.maketahoemine.com/buyers-sellers/whats-my-home-worth/, fill out the brief information page and I will be happy to provide you with a free, no obligation comparative market analysis (CMA).
Spring is right around the corner, so what are you waiting for?