Are we there yet?

We are at the end of the first half of 2011…have things improved?  Are buyers more confident?  Are prices stabilizing?  Well, in my corner of the world, we have seen just a hint of stabilization of prices … just a 1% plus or minus since this time last year.  The interest rates are holding, but mortgages are harder to get due to more difficult guidelines for buyer qualification and tighter appraisals on purchases. 

We are still in a price war and and beauty contest.  Homes that are well priced and in excellent condition are selling and are selling in reasonable timeframes.  The last two townhomes that met this criteria sold in six weeks and two weeks.  The first one was listed in November, had one price reduction and was closed in less than three months.  The second was listed in April and sold in two weeks.  Both units were owned by motivated sellers who were committed to make a move and make things happen.  This is not a market for the faint of heart or someone who wants to “test the waters.” 

Foreclosures rather than short sales seem to be a driving force and subsequently, they are the competition in every price range.  For Buyers, it is a good option if they have the ability and cash to do some of the repairs necessary if the property is distressed.  There is little room for negotiation as the property is already discounted and the financing needs to be secure and in place before making an offer. 

Interesting times…There will be, in the end, some yet unknown lessons to be learned.  Many homeowners are finding that what they perceive as a loss at one end is absolutely made up in the purchase at the other end.  Some homeowners who need to move  are choosing to move out and rent their current home and rent another to see if the market will improve in the next year or so…there are options.  As they say in the business…call your Realtor…she is the best source of information in this changing Real Estate Climate.