Are home values still going down?  Is the market stabilizing?  Should I wait to sell my home?  While there are no real answers to these questions, there are definitely no shortages of opinion, some positive and some not so much. There is one fact that remains the same: there are no guarantees.  This month is seeing increased activity.  Does that mean the market is stabilizing?  No, not necessarily.  It could mean that homeowners are getting more realistic or desperate, which can also drive values down.  The most important  part of pricing in this market is to price in FRONT of the curve.  In other words,  if a seller is trying to sell a home for 400,000 dollars in a market that is decreasing 12% a year,  the seller would be better off to price that home in front of the curve at the estimated value in 3 months ( in this case that would be 388,000).  In a down market or a buyers market,  there are more sellers than there are people willing or able to purchase properties.  As a  result, inventory rises and sellers are constantly chasing the curve or the "market".  With inventory up and fewer buyers there is less chance of selling at the perceived "market value".

 

Well, I say get in front of the curve or market.  If you realize this lesson late you will without question lose more money that you should.  It is always better to take a smaller cut sooner than a bigger cut later.  Timing is everything and no one knows when the market will turn, but don't be blindly optimistic; it could take 10 years for prices to return to where they were 2 years ago.

 

This might not be great news, but there is a reason it's called a down market: values are DOWN.