It seems to me that most of the news coming from the mouths of Americans is good when it comes to the housing market. In fact, according to a survey released recently by Prudential Financial, Inc., the majority of America’s potential homebuyers and sellers—68 percent—believe that the real estate market and property values will recover in the next year or two. In some areas that recovery is already underway and will not even take that long. Also, 86 percent of Americans believe real estate is a good investment despite the market volatility of the past few years. So, have you been wondering why the news media makes it sound like all of the news is bad?
Yes, there are still short sales and foreclosures lingering around, but even those numbers are dropping. And, we have to remember, we see foreclosures in hot markets too, we just see them in low numbers. The silver lining to keep in mind here is that along with the foreclosures and short sales, we have lowered prices. This makes for a great time to buy.
So, what is holding folks up? According to the same study done by Prudential, for those on the fence about buying, uncertainty about selling an existing home (77 percent), concern about getting a fair price for the home (67 percent) and emotions (58 percent) are holding them back. But, for those who have sold homes in the past year, despite the down market 78 percent report that they were satisfied with the sale. Of these, 32 percent were very satisfied with the final price of their home and 46 percent were grateful they were able to sell given market conditions. A relatively small number, 22 percent, indicated that they were disappointed or resentful about the price they received for their home. Does that sound like bad news? To me it sounds like there is really a lot to be happy about. At, least 78 percent seem to think so. So, why is it that the “news” is so bad, When the “real-life” seems to be pretty healthy? Because blood and gut make for interesting news, happy, fun things don’t.
I can tell you that in my neck of the woods, the market is invigorated! While working with home buyers last week, we were embroiled in two bidding wars and came up short on both! We ended up getting a third under contract and the buyers are happy and the sellers seem to be so as well. So, at this point I am going to stick to the “real-life” side of the news, what about you?
Happy buying! …and selling!
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