Thursday, June 4, 2009

Has the market found a bottom?

On one hand we can argue the bottom will be different for each neighborhood, price range, demographic, etc., based upon factors such as the number of foreclosures listed as comps, interest rates, gas prices, etc. etc.

On the other hand, we're seeing banks pricing houses aggressively enough to cause bidding wars among buyers.

In my opinion, that second part tells me we've found the bottom.  There's no reason for banks to drop prices further when their current pricing scheme has homes "flying off the shelves", at least in several neighborhoods.

It doesn't tell me how long we're going to stay at this bottom, or when a typical family will be able to comfortably sell their 3-bedroom home and move up to a 4-bedroom home.  But it does give me reason to believe we're going to see an end/change to the quarterly price drop trend I highlighted earlier this year.

Your waiting patiently Realtor,

Chris Butterworth