GLIMMERS OF HOPE?

03.27.08

Monday's news on the real estate front brought a report from the National Association of Realtors (NAR) that real estate sales were up after 6 straight months of decline. Good news? Certainly! What is behind this change?

First, there are a lot of excellent to fabulous buys available to those with cash or great credit. Many of these purchases of foreclosures or other properties in some form of "owner distress". Two out-of-area examples: Previous selling price: $395,000. Current sale: $325,000. Example #2: Previous sale: $895,000; Current sale, well below $800,000.

Although not local, both are indicative of a trend in value "adjustments" that may be necessary to make a real estate transaction "happen". NAR also said that values of real estate have declined between 8 - 10%, in some categories; however both of the above examples see a current negative value change of between 15 - 18%. I

Two other notes: A second, positive news story came out of New York State on Monday, which also has seen a real estate activity resurgence - of sorts. And on the national news Tuesday, there is talk of the market maybe firming, after all the bargains are snatched up. This could be good news for sellers and agents, if this actually does occur. I think it will and it could well put us on a rebound by the fourth quarter, if not sooner.

The market here is not by any means following the "national" news reports however, for a while yet, the time lines for seeing a pick-up in sales activity will remain longer than many would like.


©2008, R. Leech features