Mar. 10, 2008 - FALMOUTH 15 YEAR HOME VALUES

Falmouth Home Values - the Last 15 Years
That was quite a ride from 1998 to 2004 and very profitable for those that hung-in following 8-10 sluggish years beginning in 1989.  Those that purchased at the top of the market in the late  80's couldn't sell since the market value fell below the cost of their homes.  That problem exists today causing so many homes to be overpriced, a glut of homes for sale and a market slowdown . 

How then should one proceed?  Answer: by learning to become a smart homebuyer.  Real estate is a business and homebuyers should take a business approach when buying a home.  Study the market and learn its cyclical patterns.  This chart only covers 15 years, but go back another 15 to 1978 and you will be able to see the beginning of the early 80's housing boom followed by a slowdown, followed by another surge, then the collapse in 1989-1990, all very cyclical.

Understanding the cyclical nature of the market may teach you to be cautious of a "hot market." to buy with care when prices get too high and avoid a buying frenzy.  On the other hand, it's an art to sense when the market it getting near the bottom, because that can be a great time to buy.  In either case, the real estate market may have risen or fallen by a couple months before buyers are aware and opportunities could be lost. 

To conclude, todays lowering prices are pointing towards the best time to buy and smart homebuyers will take advantage of the opportunities available.  But then, they have learned to do so in all markets. For more information, please contact me at dfkelley@pair.com. - DAVID