March 30, 2009

Which Industry Will Start the World's Economic Comeback?

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While attending the Leading Real Estate Companies of the World^® convention in Scottsdale, we all had the pleasure of listening to Steve Harney’s Keynote address at our Friday luncheon. As a subscriber to Steve’s “Keeping Current Matters” program, where we are updated in detail on current economic matters, it again came strongly to my mind how … and who, will end the economic situation we find ourselves in. Recovery will start with the real estate industry just as it began with the subprime, mortgage, and credit crisis.

The process will begin, as it already has in Arizona, Nevada, and California; with the proper pricing of homes to sell in this market. My counsel to those who want to sell now is that if you don’t have to sell… then don’t. Prices are approaching their lows from the 2006 highs in Northern Utah. Rather than move, fix-up, remodel, make an addition rather than sell. However, if your ARM is resetting, or if you have lost employment, or you find that you need to sell… price your home to sell in this market so that it will sell sooner than later.

The reason for continued falling prices is that prices in Northern Utah (Utah, Salt Lake, Davis, and Weber Counties), will decline further this year simply because supply is increasing faster than demand is increasing. That means that sellers need to get under the market price and make your house “sale-ready.” This will allow you to stand out in the market and attract that buyer. Predictions we heard at the conference are that we will bottom around November of 2010. We don’t know how long we will stay at the bottom but some national experts say it will likely take our four or five years to get back to 2006 levels.

If you are a buyer, now is the time to buy. In our lifetime there is not likely to be a better time to buy than now. The country will work its way out of this recession and when those signs start to show, more will buy, interest rates will increase, and prices will rise. There is risk if you wait too long. If you are a first time homebuyer, moving up into a new home, or buying a second home, now is the time make that purchase. Timing the market perfectly is difficult to do. Some may want to wait for the very lowest interest rate or the very bottom of the pricing market. Good luck because you won’t recognize those times until they start to come back up and then you may have missed your opportunity. Now is the time to qualify and to buy.

Here are all the latest homes for sale and contact me directly for a list of all current foreclosure and short sale homes in Northern Utah.

Posted By: Steve Randall