Home Prices Have Hit Bottom

As the following explains, many feel that home prices have hit bottom. I agree that if left up to buyers and sellers this would be the bottom. We are seeing multiple offers at or above the listed price which indicates the properties could sell for more except for one very important player. This player is the lenders. The lenders are continuing to devalue property by requiring an appraisal with at least one sometimes 2 comparables must have sold for more. This is creating a perpetual declining market. Also with the banks flooding the market with houses priced under market, looking for a quick cash deal they are further driving down the comps. The lenders are forcing the market lower by listing properties so low and making it tough for buyers to get a loan with the appraisal situation.

The second part of the article discusses the seller’s perspective of home prices. This is very true. Seller's often times feel that their property is exempt from the issues affecting the rest of the market. They feel their property is worth more than the one down the street. Some like overlook the any negatives about the property and see pink carpet and paneling as a reason their house is worth more than the neighbors. I try to explain that the reality is, their house’s value has declined and that even if a buyer comes along and is willing to pay over market value, they will not be able to get the loan. Many times the seller lists the home with the agent that tells them everything they want to hear as opposed to one who was upfront with them from the start. It can be difficult to watch as the property languishes on the market as prices continue to decline. So keep this in mind if you are considering selling your home, if the list price sounds too good to be true, it probably is.



Daily Real Estate News | May 19, 2009 | Share

Practitioners Say Homes Prices Have Hit Bottom

Real estate professionals are optimistic that home prices will hit bottom in the next six months, according to a survey from listing and home-pricing site HomeGain.com.

About half of practitioners surveyed expect home prices to stay the same in the next six months, 29 percent expect them to drop, and 22 percent believe they will increase.

More than 84 percent of practitioners believe their clients’ homes lost value in the last year, while 12 percent say values had stayed the same. Only 3 percent believe homes had gained value.

Meanwhile, sellers were skeptical of their real estate professional’s analysis, with 69 percent believing their homes were worth more than the practitioner recommended. About 35 percent of home sellers thought their home was worth 10 percent to 20 percent more, and 10 percent thought their home was worth at least 21 percent more than their real estate professional suggested.

Source: Inman News (05/18/2009)