Monday, August 17, 2009

The end of the bottom is upon us....

Well I've been watching and waiting for some signs to signal that the end of the bottom is approaching and I have begun to see those signs. Foreclosures and short sales are still coming out on a daily basis but now they are being snatched up pretty quickly if they are good deals. Buyers are wading back into the market at a rapid pace and are no longer scared of their own shadows. The number of contracts being signed are up and the days on the market are down. In some "hot" areas where there is a lot of pent up buyer demand, the days on the market for the average well priced home is now below 30.

Mortgage financing is now the biggest obstacle that is still hindering a complete housing recovery since consumer confidence is slowly being restored. Banks are slightly beginning to loosen their vise-like grip on credit so we are seeing a slight uptick on closings. Rates are still very low but credit is still difficult to obtain. Buyers who have good credit, verifiable income and a down payment are really scoring some terrific deals in this market. Investors with cash are snapping up low priced deals and either fixing and flipping or holding as rentals for future appreciation.

My prediction is that the Metro NY housing market will be on the road to recovery as we hit 2010. Real price appreciation probably will not occur until 2012 but by then we will be heading into a strong seller's market again with home prices on the upswing and a strong decline in available inventory.

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