Hear Ye Hear Ye
On Dog-Bone Knob this glorious Groundhog Day, February 2nd, 2009
Bill proclaimed that his beloved Pittsburgh Steelers were World Champions one more time
And a sky above me
Showed no shadow beside me
So the Minneapolis real estate market has hit bottom and is on the rise as of 5:07 A.M Feb 2nd, 2009.
Alright this did not happen but it would be cool right. Un-like Punxsutawney Phil there is no “Bill” the dog, there is no bell that will ring at the bottom but we are already past the point of surrender in this real estate market – buyers are smarter and sellers are much more realistic.
On the bank owned side banks are much better dealing with short sales and foreclosures and the majority of signs are pointing to some improvement and at the very least, signs of leveling out.
The market hitting bottom is a question I get all the time but the truth is the bottom is different for everybody. Some buyers are concerned about interest rates and that’s their bottom line, some are cash buyers and could care less about rates so the bottom varies depending on your situation.
The question “when we will we hit bottom” poses so many more questions. What is the bottom to you? Is it:
Lowest sale price?
More homes selling in a specific month?
Longest or shortest days on market?
Home values rising in a specific neighborhood? (Do you really think that’s something you can catch without it passing you by, I mean think about this – by the time you see a history of prices rising won’t you be too late?)
You see the bottom comes in many shades and means so many things to so many people. The fact is there are many areas already seeing growth, some areas are building, some areas are maintaining at level and some are still declining but you need to understand what you’re looking for and for what “specific” area as they are all different.
We are discussing these items with our buyers and suggesting they decide based on these 3 items:
Where do you want to live?
Structure the proper loan
Housing is something we all need. If you look at the average time someone owns a home of 5-7 years I think no matter what you consider to be bottom and when that hits for you I think you will be happy with the decision to purchase a home in the long run.
In the end it does not matter what we read or see on Television about the real estate market as it’s a best guess scenario and depending on where you heard it I think sometimes it’s a flip-of-a-coin. We do our best to understand and appreciate the real estate market but truly no-one has that crystal ball or Bill the dog in their yard. Find what makes sense for you, find a good real estate agent to help guide you through the process and best wishes to your success.
If you need any help purchasing in the Twin Cities area and suburbs please contact Derrick at (612) 282-7653.
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