As we look at the current real estate market, many people are amazed at how low values have gotten. This is because the vast amount of foreclosures have forced banks to sell at ridiculously low prices to get them off of their books as fast as possible, even if it means losing large amounts of money. As these properties start to get bought up, prices will start to stabilize and home values will start going up. People will start to realize that the number of houses for sale is going down will rush in to get the good deals before they're gone.
I already am seeing this happen as homes go on the market, there are multiple offers and the typical market time for a home that is realistically prices is often under 30 days. In a normal market, 90 -180 days is typical. In my neighborhood, I am seeing prices starting to go up. There is a guy rehabbing houses and getting good prices for them. He bought one for $180,000, fixed it up, and sold it in less than a week for around $290,000. I am seeing signs in other markets of prices going up, too.
Another phenomenon I'm starting to see is that banks are holding on to properties to doling them out little by little to try and keep the prices high. There is a house on my street which was foreclosed on over 6 months ago but has yet to be put on the market.
I guess what I'm trying to say here is that I think we are pretty close to the bottom, if not there. If you are thinking about buying a house, this is probably the best time ever to get in. Even if prices go down, it won't be as drastic as it was at the beginning.
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