More Evidence - A Change in Our Real Estate MArket

July 23, 2012
Multiple offers, lack of inventory, buyers writing offers, this month's real estate market has seemingly turned the corner from the "sit-on-the sideline" days of the past several years. The shadow inventory has not emerged and rather than a glut of homes for sale, we are experiencing the lowest number of active listings that I have seen in thiirty-six years of real estate.
The supply is low, the demand is high. Are prices rising? It does not yet seem that prices are rising. Perhaps buyers are still cautious about over paying. Clearly lenders and appraisers are very cautious. While buyers may overbid a listing price, the appraisal may yet reflect the value of the past market, not the present market. Hopefully, rather than the market being described by appraisers as "still declining", they will begin to call it a "stabilizing" market.
In times of transitional markets, and this is clearly a tramsitional market, it take time for buyers, sellers, lenders, appraisers and real estate agents to recognize and act on the changes.
After such a deep decline, everyone is concerned about making wise decisions. No one seems ready to return to the heated market of 2004-2006.