Has the residential real estate market bottomed out?

Now that we are recession battle weary and it seems like forever since we have heard any good economic news many are contemplating the question – are we finally turning the corner? This is the million dollar question and if you don’t like the predictions from one analyst or economist then Google for another and you will have a prediction that is significantly different than the last one you just read.

In any case, one indisputable fact is that we are now hearing more cries from the gallery that we are approaching the bottom of this down real estate market, where even some stats are showing the one off market improving month over month.

See recent article:

ASU-RSI: Beginning of the End or Price Plunge

Published: June 15, 2009 in Knowledge@W.P. Carey

Sales data from March indicates that a trend change in housing prices might be underway in the beleaguered Phoenix metro market. click above title link for complete article

I think we are close to the bottom as the supply and demand curves are leveling out and price reductions in most areas have begun to stagnate. We will continue to see depressed prices for properties that have been run down and are in need of a complete rehab so one must compare apples to apples and focus once again on value versus solely on just price per square foot.

Yes I could buy a house down the street at $40 psf versus one four doors down that is listed at $60 psf but the one at $40 needs to be rebuilt inside where the $60 house just needs some minor updating, so if you compare the value the $40 psf house probably needs $40,000+ in rehab work and you still might find more issues down the road with a beat up property so is it really the deal you thought it was?

In many parts of Metro Phoenix and North America for that matter good properties that are priced at market are selling quickly at their asking price, this is a sign that we are bottoming out in some geographical markets and that if we dont move upwards we will perhaps bounce along the bottom for a while.

Here is an interesting article with a country wide geographical view of the market:

Buying and Selling 2009: What It’s Really Like

by Dana Dratch
Monday, June 1, 2009 provided by

For buyers and sellers, the past few months have been schizophrenic.

In 2009, sellers are battling shrinking home values and a constricting pool of available buyers. Buyers are sensing opportunities on home prices and home mortgages — if they have the credit, job security and ready cash to qualify. click above title link for complete article

The real estate free fall might just be over but what ever you do make sure that you educate yourself before jumping into the real estate pool. There are some great deals for the new homeowners, investors and those that might be looking to move back in after a real estate set back.

Good luck and happy house hunting!

Cheers,

Michael