You need only glance through the Sunday paper to get inundated with the "doom and gloom" perspective of reporters on today's marketplace. It's been so frustrating to read knowing that the reality from MY vantage point is a bit different. True, the market has shifted a bit over the last few years. Many of us reaped the benefits of annual double digit appreciation - but is there truly anyone that anticipated that those types of gains could continue? I certainly didn't. Unfortunately, I continued to see first time homebuyers being squeezed out of the housing market. The rate at with appreciation was accelerating HAD to slow down. True, some sellers who may have purchased when the market was at its peak may have suffered some losses if they found themselves in a position where they were forced to sell. Overall - what we've recently experienced is simply an adjustment. Those of us who've been in the business for any length of time have lived through adjustments before. They're a fact of life - like babies growing up and moving away, and life moving on.
Where does that leave us now? Some economists have predicted another year of depressed real estate prices before a recovery begins. I tend to believe that we in the Baltimore-Washington corridor are fortunate when it comes to real estate values in that we live in an extremely transient area. On September 22nd, Kenneth Harney wrote an article for the Washington Post noting the most recent trend of appraisals coming in with higher valuations then contract prices agreed to by the parties. Is this an indication that we've bottomed out and are on the rise again? Time will tell.
If you've been thinking of a move but have been waiting for the recovery to begin before you "jump-in" - you may want to rethink your logic. For the first time homebuyers - NOW's the perfect time, while we're still in a buyer's market - to get the maximum amount of assistance in closing help or concessions because of the high supply of properties on the market. If you're thinking of moving up to a more expensive home - NOW's the perfect time for you as well! Hypothetically, if the market has been depressed by - let's say 10% - and you're selling a $200,000 home, your potential loss could be $20,000. If you're in the market to purchase a home for $400,000 now - that homes value has also been depressed by the same 10% - or $40,000, which puts you at a $20,000 advantage to make your move now!
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