What, was that positive news on the housing market I just heard?

Local media recently reported that home sales were up 5% last month, the first increase in a long time. Let's interpret: Typically before we see any increase in housing prices we see an increase in the number of sales or volume of the market. Prices have now decreased to a level where more buyers can participate and enjoy the benefits of home ownership. We are likely to see another change in the market in the coming months. Areas where prices have stabilized are likely to see home prices increase. That's right, I said it, I am on record, we will see home prices increase. Because of regulations now in place, it is doubtful that we will see prices increase to double the list price of a home (like we did in 2004), but we are quickly heading back into a market that favors the smart seller with an effectively priced home. If a home is priced too far above what the market will bear, then it is not likely that it will sell quickly or even at all.

There is currently a moratorium on foreclosures which also begs the question "Will we see more bank owned homes coming on the market causing a dip in prices?" At this point, the banks are required to hold their toxic assets off the market while the government figures out how to mitigate the potential damage to the housing market, a benchmark for a healthy economy. However at some point, the banks will need to purge these assets, some of them vacant and vandalized. We will see some more bank owned homes becoming available in the coming months, but they are likely to sell quickly and with multiple offers. Key for buyers, be prepared, get pre-approved and make sure you and your Realtor are tuned into all new listings. You will likely have to be decisive and present a very strong offer on upcoming bank owned listings, especially if they are in livable condition and in a decent location.

From my perspective, Real Estate is never boring. It is ever changing and presents opportunity for both buyers and sellers regardless of the climate of the market place.