Many buyers are looking for some strong signal that the real estate market has hit the bottom so they can hurry up and buy.  And when the re-balancing begins, if it hasn’t already, it will not necessarily be all types, or locations, or price ranges of home will improve at the same time or speed.

Real estate is local, even to a specific floor plan in a community. A few weeks back I shared some statistics I compiled for six subdivisions in McCormick Ranch, where several communities had depreciated, and a couple showed appreciation. Until you look closely at the local pricing history, it’s hard to say exactly where a given market it.

Yesterday, I sat down to prepare a market analysis report in preparation for writing a purchase contract for an older, centrally located Scottsdale townhouse, that appeared to be in very good condition.  The buyers were very surprised when I showed them that prices were still appreciating in that community, and that the average number of days to sell is a mere 32 days.

Is this a recovery in this segment of the market, or did the community just weather the changes better than other areas? 

And then today, this Reuters article pops up:  Bargain hunters may toss a lifeline to housing

I especially appreciated Russell Shaw’s perspective:

“I think this is the best buyer’s market that has existed in a decade, maybe longer,” said Russell Shaw, in his 30th year with John Hall & Associates real estate in Phoenix. “There are tons of inventory, great interest rates and the prices are back in line to where houses are decently priced again.”

“If people have a good track record of paying their bills, the loans are there,” Shaw said.

Buying vs. renting is a question that is asked in every market, buyer’s or seller’s. And there are fundamental questions you should ask yourself in making a home buying decision, along with financial evaluation and preparation.  And yet, for many home buyers, there is often some intangible internal driver that’s pushing them forward to get into a home of their own. The dream of home ownership is still alive and well. You just may have to work a little bit harder to get there.

Buyers call the shots.  Offers are low, and many buyers are hanging tough on what they are willing to pay.  With the rapid slide of prices, buyers are nervous and making their offers according. 

Some sellers are doing what it takes to sell.  While the offers are coming in low, and sellers are more than grimacing.  I experienced sobbing, yelling, and screaming.  And then, when home sellers are presented with the hard numbers of what the market is doing, they are countering and accepting offers more readily.  Just this past week, I completed a contract for an out-of-state buyer that was totally rejected by the seller two weeks ago.  The seller’s agent called back and asked if the buyer would reconsider a counter from the seller.  And common ground was found.

Buyers are asking for the moon in repairs.  As a listing agent, I’m seeing incredibly long repair requests, once the inspections are complete.  And as a buyer’s agent, I writing them up.  I used to have conversations with buyers that “you are not purchasing a new home“.  Not these days.  And, sellers are stepping up and completing many or all of the repairs, not wishing to jeopardize the sale.

More sellers are bringing money to the table.  It’s true.  Home owners have been using their homes as banks.  Either to purchase their next home, or to pay off other debt.  Some sellers have the resources to bring cash to close, while others are in negotiations with their lender for a “short sale”, selling for less than they owe.

Renters are in no hurry to buy.  I’m writing more leases than I ever have in the past. Clients who sold homes a year or two ago are holding out to buy again.  At the same time, I recently represented a buyer who sold their home three years ago and were ready to buy and settle again. 

Prices are finally starting to get more real.  I went on a John Hall broker tour last week, and was surprised at my reaction to a number of the homes.  “Wow, this is priced well.”  “Seems like a lot of house for the price.”  The pricing feedback I got on the home I was showing was equally positive.   Maybe we’ve been so numbed by sticker shock, that anything seems to be an improvement, or maybe we are getting close to true market values.

Realtors are either incredibly busy or wondering what to do next. A number of the agents that I’m in contact with are very busy.  The real estate market has changed and staying on top of these changes takes time and perseverance.   Agents who are there actively developing their business, and working with buyers and sellers, are the ones who have their finger on the pulse of what’s happening.  Find them and ask lots of questions.

I could say, “it’s a great time to buy” or “it’s a perfect time to sell”, but in this market, the reality of the situation is that you, as a buyer or seller, make those choices.  As I’ve mentioned before, life moves on, people get married, have kids, retire, invest, or just want to get a fresh start in a new town. 

Just think of it as “Real estate is local”,  right down to what is going on with you and where you want to be.