A Perfect Storm

Ok, Honestly... this fall & winter may be the absolute best opportunity for buyer's since I can't even remember when. I have been licensed and a FULL-time Realtor since 1997, most of my career has been within a normal market, the frenzy was abnormal, did we all hear that? The frenzy was abnormal.. this is real world real estate NOW - the only difference is that with all of our current inventory it is TRULY a Buyer's market.

A seller of mine and I were talking the other day, he was sharing with me his insight on the real estate market; he works within the market himself as a contractor. During our discussion he shared with me how he feels that 'a storm is brewing' within the real estate market nationwide.

I have been thinking of those words- for several days now- here's how I see this being a storm to benefit any buyer smart enough to hire a caring Realtor & delve into this market.

• Inventory of homes is WAY up, well over 56,000 homes currently
• Buyers are at a minimum; many are too scared by negative publicity from press
• There are STRONG negotiations happening in Buyer's favor
• There are many NEW & SAFE loan programs that were widely used years ago
• Interest Rates are beginning to correct
• High number of short sales that will be foreclosed on within next few months

As of right now, inventory is at an all time high- in my 10 year career the average number of listings from my own tracking is typically around 28-30,000 we are 2x that number right now. Many of those homes are short sales (where the lender agrees to accept less than what is owed so that the home can be SOLD); a good percentage of those are not in good condition and need work done to them- with all the inventory many of them will go back in foreclosure.

Once those homes begin to go back to banks, (foreclosure takes about 6 months) the current resale market will begin to segregate itself into different categories; we will have resale homes & foreclosed properties/short sales/ distress sales. This is how the market was viewed prior to the frenzy when people would buy anything and do any work needed to it themselves.

I feel that looking at the timing of all of this that homes will begin to hit full foreclosure during this winter- with some segregation being evident by March/April, which will be just in time for the normal Spring Break rush of activity when Home Buyer's begin to look at homes.

My belief is that come next spring, even if we have close to the same number of listings, the 'division' between the differences in listings will make the market appear smaller- the true number of resale homes will be lower in the eyes of a buyer looking to buy a home to move their family into. If you are an investor you will be concentrating on distress properties, not the resale market that wants full market value.

This fall and winter may very well be the best time to buy a home for your family, or to begin investing for your future in distress properties... indeed a perfect storm may be brewing, will you be one of the smart buyers to take advantage of it?

By the way, if you are considering selling, be sure that you interview and then HIRE, a FULL-time professional Realtor so your home receives the most exposure to this market- you will fare best in that position, then be sure your agent helps you to stay on top of what is going on as often as needed. If you arm yourself with knowledge you will have the power needed to sell quickly & for top dollar.

Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!