"How's the Market? Is it Picking Up?"

With the status of Real Estate today, I get this question every time I meet someone new. Whether it's my new dental hygienist, a new fish client of my husband, or someone I meet at my non-profit group!

Let's start with the first half of that question:

How's the Market? I generally roll my eyes a bit, sometimes even laugh, not too loud though. In all honesty, and my clients/friends/family know that I am honest to a fault, the market is challenging. That's one of the words I use to describe it daily. Challenging for sellers, challenging for buyers....and needless to say, that makes it challenging for your Realtor!

A traditional seller with some equity is generally dismayed with the current value of their home. When only, as we all know, just a few years ago it was worth thousands more. Then, there is the seller that is upside down, owes significantly more than what it is worth today. He has the moral dilemna about Short-Sale like all his neighbors are doing, or hanging on, because he truly loves his home, until prices 'come back around',  Of course, there is also the owner that is in financial hardship. It's possibly been an economic domino effect for him, and he just can't keep up the payments. And, also the ones that have walked away from their home which now we have an REO seller, a bank owned property.

And, each scenario is a challenge. The traditional seller wants the absolute most for his money, who wouldn't? The Short-Sale homeowner just wants to get it done and move on and that situation moves like a snail stuck in molassas. The REO seller doesn't give a hoot about anything other than no liability after sale and bottom dollar. Phew, watch their disclosures, but that's another blog topic!

Now, after describing those challenges, let's move onto the second half of the typical question of 'Is It Picking Up?':

Hmmmm, depends on what they mean by picking up? Seems to be they want to know if prices are going up. If sales are being had any easier too. Prices seem to be stable right now. In Santa Clarita we have twice as many homes available for sale as we did a year ago. That doesn't help prices go up. Less supply, more demand, that makes them go up. But, stabile is good for right now. How soon will they go up....not soon. This is going to be a very gradual appreciation that is going to take a very long time.

Are sales being made any easier?......well sort of. We are getting into contract a smidgeon easier, dependant upon the type of financing the buyer is doing and how popular the property is. But, the Short-Sale listing continues to muddy the path. It continues to challenge opening an escrow. Until it is approved, you are in limbo. The more REO's that continue to come on the market, the easier the sales come. Those are somewhat easy of a close. And, the traditional sellers that aren't ridiculously overpriced, those are good ones to jump on and easy to close. Compared to the molassas snail muddied Short Sales, anything is easy.

So, How is the Market, is it Picking Up? It is a challenge (I suppose I could find a different word) and it is not what I would truly call picking up.  If we get a glutton of REO listings too many, too fast, that will hurt. When we are thru with all bank-involved listings, our market will fare better. Until then, accept stabile pricing and a little bit easing up of getting into contract. And, let your Realtor do the work they need to do. It's already challenging enough for them to help you nowadays. Do what they suggest. It will make the home buying/selling process less of a challenge for you.