Getting to the Bottom of It

A few weeks back, we speculated about how much farther the real estate market will adjust before hitting bottom. At the time, we felt the market was more or less bouncing along the bottom due to the upheaval in the mortgage industry and numerous price reductions of active listings.

More evidence that we are potentially close to the bottom continues to make itself known. New properties that are listed for sale are in line with what the market is bearing. We are seeing fewer if any, overpriced listings go on the market. Properties priced right, are indeed selling.

Many sellers are now taking their homes off the market and not making further price reductions. Other sellers are putting year round renters in their properties to hold the investment until this cycle ends.

The recently passed rescue package will help homeowners stay out of foreclosure which may impact the real estate market considerably. Now, sellers will not be forced to sell at lower prices. These rescue mortgages do come with baggage of their own though. Homeowners could lose equity in their property by assigning a portion of the profit when they eventually sell. 

It will be interesting to see what will happen in the months ahead. The upcoming election and recent stock market activity will have an impact on all of us in one form or another. We'll have to see how this plays out. The fourth quarter is promising to be an exciting, anxiety filled and revealing time.