We had our office meeting this morning where an agent shared that he heard on a morning news show that the real estate market has hit the bottom. Even with that sunny outlook (which I will cling to like a fly on honey), MSNBC News reports it’s too soon to actually say we’ve hit the bottom. Though most of the article was somewhat gloomy, this part definitely cheered me,
The housing industry has also been encouraged by a recent easing in mortgage interest rates, but analysts say ongoing turmoil in the financial market could keep those rates from falling much further.
“I think we are at least two or three months from a sense of (the housing market) going up, and longer than that, maybe six months, for real confirmation at best,” said Blitzer. “There are plenty of people out there, including S&P’s economists, who think we are probably looking at another year before there’s a real bottom.”
I disagree that we’re still a year out of the “real bottom,” but that could be because the Middle Tennessee market remains strong when compared to the national market.
The Housing Market Tracker agrees with me (or maybe I agree with them) that the home prices have finally proven low enough to draw buyers.
The oversupply is severe: In some major markets, including Las Vegas and San Diego, foreclosure-related sales have accounted for more than 40% of all sales in recent months. New data suggests that pressures like these are starting to drive prices low enough to attract some buyers back into the market.
Tennessee’s outlook fares much better… from the Jackson, TN area,
Local Housing Market Expected To Rebound. “Central West Tennessee Association of Realtors/MLS: The inventory of homes on the market in Jackson… measured at 12.6 months in December… On Feb. 29, inventory had fallen to 7.6 months … In Jackson and Madison County… 291 homes sold this year through Feb. 29, a 21% decrease from the 368 homes sold in Jan.-Feb. 2007… Homeowners in Jackson waited an average of 106 days to sell their homes during Jan.-Feb. 2008; an increase of 19 days from Jan.-Feb. 2007… The average price for a Jackson home during Jan.-Feb. 2008 was down more than $25,000 from Jan.-Feb. 2006 to $106,131 from $131,294.” (Jackson Sun, Mar. 24th)
I’m watching, waiting, and yet working furiously to find buyers for my listings, along with looking for the perfect home on behalf of the buyers I’m working with.
