Anecdotal Evidence of Improvement in the Real Estate Market

    
Inman News, a leading source of independent real estate news, information and commentary, just published findings from an online survey* they conducted recently.  The results indicate that three out of four respondents believe that the housing market in their area is improving or stabilizing and most say they have noticed the change within the last two months.

Of those that felt the market was improving, 70.6% cited ‘low interest rates’ as the number one reason for the improvement.  Interest rates on conforming, conventional mortgages are at, or near, fifty year lows as shown on my Mortgage Info page.  Following close behind this reason was ‘affordable prices’ at 67.8% and ‘good deals’ at 57.1%. (NOTE: Respondents were asked to cite all reasons that apply so totals add up to more than 100%.)

The survey also tried to gauge the attitudes of buyers and sellers.  On the homebuyer side of the equation, agents are finding that 74.7% are still very ‘cautious’ when it comes to moving forward with purchasing a home.  This percentage is extremely high and shows that purchasers are still in a wait and see mode when it comes to the market.  More than likely, they are going to want to see some more positive news out of the financial markets and continued stabilization of interest rates for them to get off the fence.

From a sellers point of view, agents are seeing a mixed bag.  While 54.2% say sellers are being ‘realistic’ with their prices, 40.4% say sellers remain ‘stubborn’ and are unrealistic when pricing their homes.  From my perspective, these numbers regarding pricing don’t seem to be too different from a balanced real estate market.  It is always natural for sellers to think that their home is worth more than what it actually is.  One agent that was quoted in the survey stated, “Sellers never seem to understand that the market includes their home also.”  I couldn’t have said it better myself.

Another area of concern right now in the real estate market is the overabundance of available inventory.  Based on the survey, glimmers of positive signs are trying to peak through the clouds.  68% of respondents indicated that the inventory of homes in their area is stabilizing or shrinking.  While this is good news, the numbers compiled on my Market Info page are still on the high side and will have to decrease more if we are to get back to a more balanced market.

Now I’m not living in fairyland world thinking that “happy days are here again”; however, I’m encouraged by the findings of this non-scientific survey.

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* “Survey: Real estate market shows vital signs.” Inman News – Where Real Estate & Technology Connect. 02 Apr. 2009. Inman News. 05 Apr. 2009 <www.inman.com>.