If there’s an opportunity for home sellers within the residential market, it’s now. There have been a great number of reports both locally and nationally that state the bottom of the real estate market has been reached or was hit last summer (2011). Hmmm, that’s interesting, because I don’t recall the law of supply and demand being repealed. It’s similar to the LAW of gravity – it exists even if you choose to ignore it.
Let’s do some simple math:
60,000 – The number of properties repossessed each month by lenders (nationally).
260,000 – The number of properties PER MONTH that have the foreclosure process started on them.
3 million – The number of annual sales in the United States of residential real estate. (NAR’s forecast was initially over 5 million; then it was reduced and reduced again. THEN they came out with a report saying, “Ooops, we were double counting some sales as the same properties were being sold more than once per year [being flipped by investors].”
190,000 – The number of properties in excess supply PER MONTH that WILL at some point come back into the marketplace … When? What day will that be? I see the foreclosure reports, yet missed the memo that the banks are releasing them into the market next Thursday at 8am. (Of which there was no memo, but could they? How do you know?)
So, how on Earth is there a pocket of opportunity for SELLERS????
The supply HAS diminished. Read that statement with caution. This does NOT mean we have reached a bottom. Demand has stayed the same (slight increase in number of sales). So, if there’s an opportunity to SELL your home for the maximum dollars available in the market, have LESS competition, and maximize your equity preservation, wouldn’t you want to pursue it?
Has there ever been a time when you didn’t follow your gut? Is it possible that this time could be just like that time?