The news is grim for the housing market ... I've remained positive throughout this slump, as you'll see in my other posts, but there are some statistics you just can't ignore ... For instance, over 1/2 of the major housing markets in the U.S. are in decline, with some expected to post double-digit losses over the next 5 years. And, even the National Association of Realtors (NAR), usually a glass-half-full type of organization, has predicted a nationwide drop in home prices (for the first time in the 4 decades they've been making these predictions).

While it's impossible to know exactly when the down-market will turn around, there are several key indicators to look for in your local market:

• inventory is declining - a good local broker should be able to tell you how many months worth of inventory is on the market in your area. As long as it's in the 6 month ballpark, you're probably okay. Between 6-9 months, prices should remain stable. Over 9-10 months, you'll see prices decline. At last check, there were approximately 12 months worth of inventory on the market in the Athens/Oconee market.
• realtor attitudes - a few years ago, everybody you knew had a real estate license or was thinking about getting one ... it was easy money right? Well, times have changed. In the past year, I've heard more people say "how do I get outta this business" than "how do I get in" ... there's just not enough business to go around. In this industry, and especially in down-times, the top 10% of salespeople do 90% of the business. And the remaining 90% of salespeople do the remaining 10% of the business. With sales slower, that 10% isn't enough to feed 90% of the agents, so we're seeing alot of agents find new careers.
• sellers act less desperate - if you read the home for sale ads in your local publications, you'll see offers for new cars ... $10,000-20,000 bonuses ... first 6 months free ... you name it - I'm sure it's been tried. In a more stable market, the supply & demand keeps the market active ... no need to lure clients with lucrative bonuses. As the market strengthens, you'll see less and less of this

In a college-town such as Athens, GA, condominiums and townhomes account for a large portion of the residential housing inventory. As a licensed agent specializing in sales such as this, I was somewhat embarrassed when an agent that I mentor recently asked me the difference between the two ... I didn’t have a good answer. I knew, but I couldn’t provide a clear answer - so, I decided to do a little research.
The word "condominium" is Latin, and means "common ownership". Owners of condos own the interior of their unit and own a percentage of the common elements surrounding their unit (grounds, pool, exterior walls, etc). Residents are members of a homeowners association, and typically pay dues for the maintenance of the common area.
Owners of townhomes actually own the ground beneath their unit and the roof above. Townhomes often times include garages, small yards, etc for which the owners are responsible. Townhomes often have common elements as well, but more of the ownership lies with the individual than in condo-ownership.
Horror stories frequently arise from poorly managed associations, but their are significant advantages ... a responsibly managed association serves as somewhat of an insurance policy for owners, helping to maintain property values and control unruly neighbors.