Well, despite what we’re all hearing about real estate in the news and how much worse can it get… let me throw a new perspective on the topic.  What if I were to tell you that our real estate market has begun it’s shift from a buyers market to a sellers market…would you believe me?

Would you believe me it I told you that inventory is down for the 3rd month in a row, and down almost 20% since July? 

Would you believe me if I told you that inventory is down 15% same time last year, and down 20% same time two years ago?

Would you believe me if I told you that sales activity is still strong with less than a 10% reduction in sold single family homes as compared to same time last year?

Would you be surprised to hear that our anual real estate appreciation rate is back on track to a healthy 4% per year?  That’s right, the astronomical real estate appreciation that was experienced in 2004, 2005 and 2006 brought home ownership in this area out of reach for many home buyers and we priced ourselves out of the market.  With fewer buyers able to purchase a home, inventory began to grow, increasing competition among homes for sale.  Inevitably, house prices began dropping due to increased supply and decreasing demand.

Historically, house prices have increased at a rate of 4% per year, which is a bench mark I like to use as a trigger point to bring us back in line with a healthy growth market and affordability back in line so more buyers jump back into the home ownership market.

Now, with our financial markets and general economy also in some trouble, real estate prices may have to drop lower still before the buyers decide to hop in, but nonetheless, we’re ever so closer to the pendulum swinging the other way. 

Let’s not forget that affordability was given another shot in the arm by the feds lowering our interest rates a whole percentage point.  A 1% reduction in interest rate for a house costing $350,000 is equivalent to a $290 per month reduction in payments.  That’s a big deal.

If you’ve been waiting for the bottom, don’t miss out on your opportunity now.  Interest rates near historic lows, and inventory beginning to melt away, it’s only a matter of time before you will have missed the bottom.  Your upside potential now is great.  Buy now and in 5 years, you’ll be glad you did!