Home prices remain depressed in some areas of the country, but for other areas prices continue to rise. This good news/bad news scenario can be different for buyers or sellers from market to market.
Many local housing markets are offering near equal measures of good news and bad news when it comes to buying and selling homes.
In some markets the good news is that housing prices are continuing to drop, making it easier for prospective homeowners to buy a home. Throughout much of California this holds true, especially in locales where foreclosures are still high, dragging down home values. Of course, this latter bit of information is bad news for sellers, especially those who are finding themselves upside down in their mortgages (owing more on their homes than what they are worth).
In other areas, the good news that housing prices are continuing to rise, allowing home sellers to see some gains on the sale of their homes. The bad news for buyers is that they’ll have to pay more for their homes, but their is a silver lining for even buyers — these markets which include Raleigh, NC; Grand Junction, CO; and Oklahoma City according to Zillow.com which tracks housing values with its Zindex survey.
Some prospective buyers are trying to time the market to jump in when prices bottom out. This is a risky game to play as it is virtually impossible to tell when a market has quit dropping. Statistics supporting housing trends are usually delayed by several months. This means that you could end up waiting too long to jump in and end up paying thousands of dollars more for your home.
Many home markets peaked some time in 2006; although further declines are still possible, some of these same markets are edging closer to beginning their recovery.
Zillow currently tracks the housing activity in 160 housing markets and has discovered that while 130 of the markets have seen their home values drop within the past year, 144 markets have returned positive annualized appreciation over the past five years. This means that if you bought your home in 2003 you shoudl be in good shape, but for some people who bought their homes in late 2005 or 2006 they could be in negative equity territory.
So, what is the best advice for buyers and sellers right now? Find out how your local housing market is performing and price your homes accordingly. A site like Zillow gives you a decent measuring tool on home values and real estate sales comparables (comps) from your realtor can give you a clear picture on the market today.
(Source: Zillow.com)
Adv. — Are you in the market for a new home? SayLending.com is an excellent resource to help you finance your home and for finding useful budgeting tips and money management information.
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