The Bad News, Bad News, Good News!

What a week for Real Estate news.

Here are just a few of the headlines.

1. July existing home sales tumble by 27.2%
(Remember that's 27% below July 09's miserable #'s.)

2. New home sales reach lowest levels on record.
(Statistics for new home sales were first recorded in 1963.)

3. Tennessee ranks #2 nationally in bankruptcies.
(Nevada is #1)

4. Inventory of unsold homes reaches record highs.
(This is a major problem in the recovery of home values.)

5. Home ownership rates are lowest since the early 60's.
("The American dream" is out of grasp to so many.)

None of these headlines were news to me. I'm living it, and August figures will not be better. After a terrific March and April the market shut down, but I've seen this pattern of roller coaster recovery before.

After the 1986 tax change laws, the market went south. Savings and loan institutions were going under daily. Developers and builders were bankrupting. The inventory soared. Well it took years to come back, but one day the inventory was absorbed, and suddenly if you put your sign in the yard a contract would beat you back to the office. Although it took four years to recover during this period, we saw brief surges in sales. Like a wave rolling into the beach, sales would briefly peak only to crash on the shore and dissipate.

So whats' a seller to do. First stay in the market. Sales happen even in the slowest economic times, and when we do hit these brief spikes in sales you can be in a position to ride them to a successful conclusion where low interest rates, great prices, and selection await a qualified buyer.

The second suggestion to a seller is to be competitive in price. Values have dropped, and a seller is competing with short sales, foreclosures, and other distress sales. You have to find the price that will sell the property, and remember your home value has nothing to do with what you paid for it, or what you "have to get out of it."

The third suggestion is, you must have your home updated and in it's best condition. The buyers do not want to choose their own wall colors and carpets or remodel your kitchen. They do want a pristine home that's move in ready. With high inventories in a competitive market one negative feature can mean the difference of your home losing out to a competitor.

One day our inventory will balance, and we will be back to a sellers market. But until then, you must do everything right to be ready to catch that next sales spike and take advantage of this fabulous buyers market with 50 year lows in interest rates. And that's the good news...