housing-market-recovery

What in the world is going on in real estate right now? The market is a bit confusing, but at Upper End Properties, we look at this as a good thing that can be used to benefit both buyers and sellers.

Let’s focus a little bit on the basics. There is a tax credit available for homebuyers in which you must have a contract in by April 30. The people with the biggest advantage are those that don’t have anything to sell and are looking to buy. Housing prices are starting to bottom out, and interest rates are at an all-time low. What does this mean? It means that we are experiencing a buyer’s market.

What does this mean for sellers? Does it mean that they should steer clear of putting their house on the market in fear of not making enough money? No, it means they may not get as much for their property, but they will be able to get much more for their money once they turnaround and purchase a new home. It’s a really simple concept, but it can get quite confusing if all of the information isn’t presented in a clear, cohesive package.

To give you a real life example, we will use a client of ours but with a different name. Susie Homeowner sold her house in Clayton for $450,000. Sure, she could have gotten $500,000 in a good market (so she sold at a 10% discount), but she understood the following. She then purchased another home in Clayton as she needed more space for her family. She bought this house for $685,000. In a good market this house was worth $775,000 (Bought at a 11.6% Discount). In essence she netted a $40,000 gain in this transaction based on current market conditions.

For a lot of people selling and buying is the main priority because of the limited duration of the tax credit. It truthfully is, in and of itself, full incentive to want to purchase a new home. For others however, buying and selling is out of the question. Job loss, fear of job loss, and tight credit has pushed a lot of people into a new category of leasing. We are seeing tons of activity in the leasing market.

Being a solutions based company, Upper End Properties understands that leasing is part of the real estate environment. People that were normally home owners are now leasing as well as vice versa, people that were never landlords are becoming landlords. People that own homes but need to move for whatever reason have turned to an alternative option, leasing. Becoming a landlord is not the most appealing thing to many people. However, buying time until the housing market gets better is an option. You don’t have to be a landlord, you can always hire a property manager.

If you have any questions in regards to this unique real estate market, please don’t hesitate to contact us. We’ve got a team of professionals ready to answer any and all questions you may have.

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