Since 2006 the media has butchered real estate. It seemed that every time the 6:00 news was on there was some horror story about foreclosures or depreciating markets. The market has been bad, but it has been worse because of the negative coverage. The negative vibe in the media echoed through the real estate market.
Well things are at the beginning stages of a turn around. The media is right back in there with their hype, this time positive. Is it going to have the opposite effect that it did when the market was turning bad?
Real estate value use to be based on the last comparable sale in the neighborhood. In the down turn real estate became worth only what somebody would pay for it, which isn't very much. With the negative vibes in the market the active homes for sale on the market were being priced well below the last comparable sell. It was a downward spiral. It seemed every time the media came out with something negative it only got worse. Real estate became emotional. Comparable sales didn't mean anything.
Now with the hype that this is the time to buy, we may see the opposite effect. So what does that mean for you? Well in my opinion if you are a home owner than it is great!. Hype isn't all bad if it will counter balance the bad publicity we've had so long in this market. With the government reinforcement, the positive news coverage, and the low interest rates things definitely can change for the better. In the post when the government has given incentives to buy real estate and the media coverage publicized it, things got better fast. Anything can happen at any time. Is this the time? It may be.
Well what does this mean for buyers? Should you schedule an appointment with a realtor and go buy a house this weekend? The answer is it is up to you. All you can do is watch for the signs and make your best judgment. There are always opportunities in the real estate market wether it is down or up. In my opinion there are more opportunities in a down market, but they take more work. If you are looking to buy a home to enjoy and live in yourself than this is a great time to buy. Take advantage of the vast inventory of homes. Never before have there been so many homes to choose from.
Well what about working with a realtor? Every realtor is different so find one that is looking out for your needs. Did your realtor encourage you to buy a home in 2005 right when the market crash? Did your realtor openly talk to you about the declining market even though you were a buyer? If he or she didn't than maybe you should find a new realtor who is more cautious of your needs than their own pocket book. There are plenty of good realtors out there, look for an honest one who can decipher the hype.
