It seems like every time we turn on the news or open a paper, we get bad news about the housing market. But, are things really that bad? With prices on homes lower than they have been in years, people itching to buy a house of their own are doing so and moving in. However the news isn’t good for homeowners trying to sell or make a return on their investment.
But, there may actually be a silver lining to it all. Believe it or not, but recent studies have shown that the prices for non-distressed properties might actually be stabilizing. What does this mean? Homebuyers should still take a close look at the risks as well as opportunities before relocating as situations can vary among regions and in fact from neighborhood to neighborhood.
What the experts are saying is that nationwide home prices have dropped by almost 7% between February of 2010 and 2011. But, this number is specifically referring to distressed sales – including foreclosures and short sales. If you take distressed sales out of the game, the reductions are a lot less. This might mean more people are moving because they want to, not because they have to.
Of course, a lot of potential homebuyers are still waiting for the market to stabilize a little more. No one ever wants to buy a home, move in, and then learnyears down the road that it’s not worth what you paid for it.
Jon Huser
