The most often asked question at gatherings - "How is the Real Estate Market"?

When I go to any event or gathering, this question about the market is the most widely asked question, sometimes even more than "How are you?"

The honest answer always is, "It depends".  If you are a buyer, the market is different than if you are a seller.  Buyers today have a lot of inventory to choose from, interest rates are low, and prices are down, so a very good market for them.  For sellers, the abundance of inventory and falling prices is not the greatest news unless they are planning to buy a bigger more expensive home. 

The prediction is that the prices will continue to adjust lower for couple of years due to upcoming foreclosures.  And if that is the case, should the buyers wait to buy or should they even buy at all? There is no one answer to this, it really depends upon the buyer's needs.  If the buyer plans to move out and sell within next 4 years or so, they may want to put on hold their buying plans.  But if they plan to stay long term, then all other conditions encourage the purchase - conditions such as good values, low interest rates, enough inventory to choose from, tax write offs, etc.  By the way, no one has a crystal ball on when the market will bottom out.  Please remember that the market is always local, so don't rely on national news, monitor what is happening in the area you want to buy in.

One advise for buyers.  Don't buy a home just based on price, consider all other factors including the "WE LOVE the home" factor.  Remember, you have to live there daily.  You better enjoy going to it everyday otherwise the savings may not be worth it at all. 

Should sellers sell in today's market?  Well, if they have to move for whatever reason, then they don't have a choice. The best thing in that case is to price the home right for the current market conditions.  But if they can wait, may be they should consider holding off for 4+ years for the market to come back.  Now if they are buying a more expensive home in a similar market, then that changes everythhing.  While it may seem like a loss on selling end compared to few years ago, the purchase bargain will way make up for that perceived loss!

All said, buying and selling is an individual need and an individual experience.  No one answer fits all.  Talk to your local agent who will give you an honest answer and guide you properly, based on your circumstances and needs.  For the right agent, it shouldn't be just about making a sale, it should be about your needs first, selling or buying! Remember, price is but one component of any transaction.

Have questions? Need clarifications? Want to discuss your specific needs?  Please feel to contact us.

Sanjeev Aneja, ABR, CRS, GRI
Broker
On Track Realty
732.494.2211
sanjeev@ontrackrealty.com