The Broker Insider!
Issue 1: How Is the Real Estate Market.

Hi. I am Jeanette Meehan, Broker/President, of Interactive Realty Inc. Since I have a strong background in real estate and business and I am on the front lines so to speak, I think I can provide an insight into what´s going on in the world of real estate.

Everywhere I go, I get asked, "How is the real estate market?" I equate the down turn in the real estate market to a stock market correction. Something can go up for only so long before it has to come down and settle into some kind of equilibrium. I can go on and on about this subject, but I won´t. You can call me if you want to discuss the economics of the housing market.

Bottom line is that until we absorb the existing inventory of housing to have more balance between sellers and buyers, housing prices will continue to drop. You know that old saying, "Buy low and sell high" Buying low is possible now because the inventory of housing is still high, putting pressure on sellers to reduce their prices. Buying when prices are depressed will provide the most amount of appreciation and over the long-term real estate remains a good investment. A lot of people say, "I want to wait and see if prices drop even further". To this I say that you won´t know when prices have bottomed until they are not at the bottom any more. It is like trying to time the stock market. As I already said, the key is the existing inventory.

So, how is the inventory? Inventory for the resale market of homes and condos remains high. New construction inventory is dropping due to all the incentives builders are offering buyers.

Once the new construction inventory drops and builders stop offering everything but the kitchen sink to get their houses sold, existing home sales will start to increase. We already are seeing decent activity in houses priced below $200,000. There are little signs, like single blades of grass, that interest is resuming in the over $200,000 houses.

My personal opinion is that improvement in the real estate market will be a slow, gradual process. So, for right now, while prices are down, think "Buy"! Jeanette

11:05:00 AM