As we near the 6-year mark of the downturn of the real estate market, people are wondering if we have hit the bottom and when we think the market is going to improve. For our livelihood and prosperity, we hope soon! There is a lot of information out there to support that we may finally be getting close to stabilizing, which should later translate into improvement.
In areas of strong job growth, markets are beginning to show signs of stabilization. Home values are no longer decreasing at as high rate. Granted, not all markets are the same, but usually when one market improves, others are to follow. The factor that is negatively affecting our market and many others is the issue of supply. The pool of buyers is somewhat constant but the number of homes on the market is still increasing. This is the case with our Knoxville market as well. Basic supply and demand shows us that when supply is high and demand is low, prices decline. However, in our office at RE/MAX Preferred Properties, the number of transactions increased drastically in the last quarter of 2011. If the number of transactions steadily increases throughout all offices and agents, this should attack the oversupply of homes and will hopefully stabilize, if not improve, our real estate market.
“We may indeed be seeing the beginning of at least a ‘soft landing’ in housing”, says Michael Feder, President and CEO of Radar Logic. “Activity is stable, price decreases have slowed and it is unlikely that many more borrowers will enter default or that many more homes will go ‘underwater’. While this may not be the beginning of a recovery, the data suggests it may well be the beginning of an equilibrium, which if the case, should probably boost buyer’s confidence. If it does, a recovery may not be far away.”(Radar Logic)
What does this mean to buyers and sellers in the Knoxville, TN market? Buy now before hindsight gets the best of you. Interest rates are at historically low rates, deals are still out there in the market, and signs of improvement are around the corner. Buy a home now, take advantage of low rates, and equity in your home may not be that far away.
Check out the story on local news – WATE Channel 6. Caroline made her first cameo on the news. One of many, we hope. http://bit.ly/yqWqwo
