Opinion by Jeff Hammerberg
For those of you homeowners looking into selling a home, the first question to ask yourself is when will home prices bounce back? – If it ever truly can. Depending on whom you ask, some say it never will, but we don't believe that to be the case.
Everyone has their own opinions on when housing prices will rebound; in today's economy it's hard to answer this sort of question with 100 percent certainty. In the past, when the real estate market was up, even the professionals couldn't accurately predict what way the market was going to swing at any given moment.
There are many factors to consider; if the economy remains shaky, people tend to hunker down making prices stagnant, when the economy is hot and rates are low, people tend to move more, which drives housing prices up.
There are some things you can look at to gauge which direction the market is headed.
It's always wise, no matter what the current state of the market, to look at the trends in your area – both in the zip code, and in the surrounding city. Even when the economy is down, you'll notice times when there will be clear up-swings in activity, like we're witnessing in many markets today. Plan your home sale around those swings, and with the input of well-trusted market advisers, like your gay realtor.
There are always doomsayers who will proclaim that home prices will never recover, and that anyone who buys or sells now will only see losses but there are also doomsday buyers, who take advantage of it being a buyer's market to make purchases at a reduced cost, recognizing the direction of the market and trends locally and nationwide!
As a buyer, with home inventory low and prices rising, your personal dedication to the numbers, and willingness to take a risk while all things seem to be aligned on your side, will result in the highest potential profits. It pays to be an opportunist, and to watch the way things go over time.
As a seller, you can weigh the potential profits of selling in today's market vs. the potential higher price you will pay for a replacement home if you wait to sell. For most of us, we "buy up" so it would be better to buy the more expensive home at today's lower prices.
The bottom-line is that no one can definitively say when home prices will "come back" although a careful analysis of today's markets show prices increasing almost across the board. What we can do is look at current trends, in order to determine if a particular time seems like it will provide a return on your investment, and ensure that you get in while prices continue to climb.
With a little luck, and some research, you can successfully navigate the market of today.
