Despite reports to the contrary, the real estate market is still moving. It is much different than it has been in the past but unlike stocks and bonds everyone needs a place to live. You may be curious to who is buying and selling in today’s market. Here are the six major groups I see as factors in today’s market:
- Distressed – These are the victims. The buzzwords that characterize this group are; foreclosure, short sale, negative equity, escalating ARM payments, unemployment, bankruptcy etc. This group is selling, getting out, moving on. A large percentage of these homes have been lost and are now being marketed as bank-owned properties. This is a tough group to work with, there are no easy answers when you owe 25% more than a house is worth.
- Uncomfortable But Making It- These people are making it, but just barely. These are the people who see the writing on the wall and want to avoid becoming a distressed seller. Many times these are the lucky one’s, they have a bit of savings or some equity in their house. These people want to sell before they lose their job or before their savings are diminished.
- Self-Realized- This is a time of self-introspection. The questions people are asking right now include: ‘Am I going to have enough to retire?’, ‘Do I need this much space?’, ‘Is this where I want to be?’. As a result we are seeing people buy and sell homes based on a change in thought. People have awoken to the realization that they can make do with less. These people are downsizing and selling second homes. There is not a real urgency to these situations, but once the decision is made it is time to get started.
- Constant Change - Change is the true engine that fuels the real estate industry and right now this has never been more true. People move because of divorce, job changes, new children, children moving out, parents moving in, and on and on. The current economy has stirred up the pot and brought more change. Along with financial stresses come relationship strain and forced job changes. These pressures bring on the need to move.
- Business As Usual - The vast majority of people still have jobs, don’t see any big changes coming and may want to move. They aren’t forced to do anything but think it would be nice.
- Opportunists- This is a wonderful time to buy a home, maybe the best I have seen in my 17 years in the business. Interest rates are amazingly low, sellers are willing to deal and in many parts of the country houses have come down in value. The opportunists are the people who are positioned to take advantage of the housing crisis. These are the investors who have cash, the first time home buyers who have their act together and the move-up buyers who see a great opportunity with an expiration date.
The only constant of any market is change and the job of any Realtor worth their salt is to keep up with that change and be the constant source of honest answers. I am here and ready to guide you through whatever situation you find yourself in and help make the best of it. That is what being a professional is all about.