Why is My House Not Selling? Will the Real Estate Market Turn Around Soon?
This is a question that is certainly repeated by many a frustrated seller in this "down" real estate market.
So you've prepped your property for sale.
You've de-personalized it, de-clutter it, rearranged the furniture, cleaned out the basement and the garage, rented a storage unit and still nothing! WHY IS MY HOUSE NOT SELLING? Have you SERIOUSLY looked at your asking price? I know that you don't want to GIVE your house away...
but are you stuck on a certain asking price because you had a neighbor down the street who sold their property (a few years ago) in a matter of a few weeks for a price that was much higher than yours? This housing market is cyclical.
There was a huge 8 year cycle which produced 150% appreciation between 1997 and 2005.
This"boom" was extend out even further with the availability of low 4% mortgage rates.
Although this was a variable rate mortgage which was fixed for 3 or 5 years, it was a major player in the peak of this cycle.
What goes up must come down! And, down is where we are at right now! US home values havecome down 29% from the peak of the market in 2006 compared to values as of October 2009...
this according to the S&P/Case-Shiller Home Price Index.
The median home sales price in 2006 was $221,900.
The median home sales price in 2007 fell to $219,000.
The median home sales price in 2008 fell again to $198,100.
Median home sales decreased again in 2009 and will likely end up in the mid $170,000 range.
This huge reduction in home prices is mostly caused by the foreclosed properties and other distressed sales.
With the prices of these homes being severely discounted...
it greatly reduces the median value home price.
There are some pockets of the country that are experiencing an increase in house values.
Some areas of San Francisco, Washington DC and a few other metro areas...
but understand that it is the LOW prices that are driving the demand for sales...
these are areas that have unusually high prices historically...
it is a buyer's market and everyone wants in on a bargain.
It is predicted that distressed properties will continue to dominate home sales in 2010 and that home values, over all, will continue to fall another 4-6%.
This is not good news for anyone who is trying to sell in 2010...
it's still going to be a tough time for sellers.
The real question is "Do you have to sell at this time?" If you can wait out the market, and it will probably several years before prices start climbing back up, and you do not have to move, you can probably catch the next boom and cash in.
On the other hand, if you are looking to make an upward move to a larger house...
keep in mind that the prices of these homes are also reduced.
So, weigh your options...
take a hit on your house now and make up that loss with the purchase of a "bargain priced" property now.
And the last scenario, if you must sell now, you must be aggressive with your price...
because this is a PRICE DRIVEN MARKET.
Good luck to all of you sellers out there!
So you've prepped your property for sale.
You've de-personalized it, de-clutter it, rearranged the furniture, cleaned out the basement and the garage, rented a storage unit and still nothing! WHY IS MY HOUSE NOT SELLING? Have you SERIOUSLY looked at your asking price? I know that you don't want to GIVE your house away...
but are you stuck on a certain asking price because you had a neighbor down the street who sold their property (a few years ago) in a matter of a few weeks for a price that was much higher than yours? This housing market is cyclical.
There was a huge 8 year cycle which produced 150% appreciation between 1997 and 2005.
This"boom" was extend out even further with the availability of low 4% mortgage rates.
Although this was a variable rate mortgage which was fixed for 3 or 5 years, it was a major player in the peak of this cycle.
What goes up must come down! And, down is where we are at right now! US home values havecome down 29% from the peak of the market in 2006 compared to values as of October 2009...
this according to the S&P/Case-Shiller Home Price Index.
The median home sales price in 2006 was $221,900.
The median home sales price in 2007 fell to $219,000.
The median home sales price in 2008 fell again to $198,100.
Median home sales decreased again in 2009 and will likely end up in the mid $170,000 range.
This huge reduction in home prices is mostly caused by the foreclosed properties and other distressed sales.
With the prices of these homes being severely discounted...
it greatly reduces the median value home price.
There are some pockets of the country that are experiencing an increase in house values.
Some areas of San Francisco, Washington DC and a few other metro areas...
but understand that it is the LOW prices that are driving the demand for sales...
these are areas that have unusually high prices historically...
it is a buyer's market and everyone wants in on a bargain.
It is predicted that distressed properties will continue to dominate home sales in 2010 and that home values, over all, will continue to fall another 4-6%.
This is not good news for anyone who is trying to sell in 2010...
it's still going to be a tough time for sellers.
The real question is "Do you have to sell at this time?" If you can wait out the market, and it will probably several years before prices start climbing back up, and you do not have to move, you can probably catch the next boom and cash in.
On the other hand, if you are looking to make an upward move to a larger house...
keep in mind that the prices of these homes are also reduced.
So, weigh your options...
take a hit on your house now and make up that loss with the purchase of a "bargain priced" property now.
And the last scenario, if you must sell now, you must be aggressive with your price...
because this is a PRICE DRIVEN MARKET.
Good luck to all of you sellers out there!