My Client Asked Me…

Thursday, April 17th, 2008

Are prices going to continue to drop, or have we finally hit bottom?

So I got out my crystal ball, shook it a few times, and said…”this is it.  the bottom is here.  buy now.”

If I really did have a crystal ball, I’d be in Vegas, baby.  But I really do think that prices have to be near their lowest.  I have seen banks slash prices on their complete inventories - by up to 20 or 30 percent across the board.  Banks are also putting new listings up at unbelievably low prices, creating multiple offer situations the first week they are on the market - which, I think, is better than having homes sit empty on the market for months on end before finally dropping the price.

It does create frustration for those buyers looking for the deal of the century - they are learning that they need to write their best offer on those homes rather than trying to low-ball the bank, because someone is going to come in with a better offer on those houses that are listed at 70% of market value! 

Here is a great article from this morning’s USA Today that breaks down the price drops (and rises in some cases) city by city.  Denver is down, of course, but not by nearly as much as some other cities!!

http://www.usatoday.com/money/economy/housing/2008-04-16-bargain-hunting-real-estate_N.htm

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