Current real estate market conditions

Some of you have asked our opinion on the current real estate market. So here goes…

For the immediate future we see a continued decline in home prices in most US markets. The market in Canada remains good but is showing signs of weakening. In the areas hardest hit (NV, FL, CA, AZ ) the worst seems to be behind us. Sales are picking up, due in a large part to huge price adjustments. In some markets prices have rolled back to around 1999 levels. With low interest rates, these homes are affordable and often payments are less than rental rates. These markets still have many over-priced homes and bank owned homes, and numerous owners are facing foreclosure. New programs targeted at keeping people in their homes along with buyers snapping up the good deals (steals) on REOs, helps to stabilize these markets.

In areas that were not hit so hard over the past few years (most of the other states), we are seeing a significant drop in sales volume but not so much in the way of price declines. This is most likely due to a lack of buyer confidence. The bleak picture presented in the daily news is taking its toll. Once consumer confidence improves the recovery can begin