Kicking off 2010!

"How is the real estate market?".......This is the standard question everyone wants to know and rarely, if at all, will it have one answer.

How is the market for me, personally, as an agent?; ....for those trying to sell?; or for those trying to buy?

Well, here are my answers. As an agent, 2009 was a tough year. Despite this, when compared to my fellow agents regarding overall production....I feel I did well. Most of my listings sold for the year, and the percentage ratio of original listing recommended price and actual sales price were within 10% or so. Those sellers and buyers with whom I worked generally left the transaction feeling good in their decisions. And the last quarter of '09 produced a nice spark in sales to round out a slow paced market. So again, for me, I was quite pleased given the market terrain. Many agents did considerably better and many did worse.

How about for Sellers? Well, most sellers who bought in the '04-07 range seemingly paid too much for their property. That is, those who are now wanting to sell the property and move on. For some, they wish the price they paid for their house or land had been less, but ultimately they still were able to purchase the home of their dreams, or one they truly enjoy and had the mortgage industry not been so receptive to all types of buyers.....many would not have been able to get into a house at all. So many are happy.

Of course, those previous buyers who are wanting to now sell their homes, have been the most hurt. Many remain on the market for several months and some even over a year due to sellers either not wanting to reduce the price into the current selling values or they are unable to do so due to the current debt on the home.

This can be and has been a problem for many in the Anacortes and outlying areas, as well as nationally, and my only suggestion is that if you don't have to attempt to sell, hang in there and expect longterm gains. If you have a steady job and can afford further investment it may be the time to counterbalance the original 'not so good' purchase with one in the near future that is better priced and with a better loan rate. This leads into the current market for buyers.

Most would agree that the time now is to buy and negotiate. It is the time to be patient with your purchase and truly take advantage of the slower pace and do your homework. By this I mean, tour as many homes as you can and if you determine a certain value for a property you like, stick to your guns, so to speak, on the offering price. More than likely, there are not that many others interested in the exact home and you can afford to allow the sellers to determine if it is worth letting you go. So, for buyers, the time is now.

Many still ask when I recommend further investment, "Will the prices continue to fall?" No one really knows. Speculation has it that there may very well be further drop but possibly just stagnation. It seems as though, statistically, that inventory is slowly dropping, but only time will tell if the trend continues. Regardless, loan rates may remain artificially low for some time, but will invariably have to rise....which means even if you wait for the market to truly bottom...which no one can guess....the rates will more than likely rise to where it counterbalances the potential gain in waiting for further price reductions.

So, the answer to 'How is the real estate market?' is not an easy or quick one. It varies depending on your perspective and what position you are currenlty in. As with many things, the market it undoubtedly cyclical in nature and will ebb and flow like any sine wave. We here at Windermere undoubtedly have an optimistic outlook on overall transactions for the year 2010. Whether this means that prices will increase, decrease or stagnate remains to be seen. Regardless, we hope that we can help you make good decisions regardless of what position you are in. Cheers and Happy 2010!

Troy