Simple Debt-Free Finance

A Simple Approach to Getting Out of Debt & Into Wealth

Don’t Look Now, but Home Sales are Rising!

Posted on | January 27, 2009 |

Las Vegas, of all places, is seeing an increase in home sales!

This is a good sign, because Vegas was one of the hardest hit when the bubble burst. Since last year, home sales have risen 15%.

The flip side of this coin is that the home prices have fallen 28%. Ouch! But this is all part of what has to happen.

The nature of a bubble is that prices get bid up to an unsustainable level. When the bubble pops, or deflates, prices must fall in order to reach the sustainable point.

I found this in an article on Yahoo! finance:

“The reason? Motivated sellers–those in distress or foreclosure–or banks with too many homes on the books are slashing asking prices in order to unload their properties.”

I think it’s also non-foreclosure sellers coming to terms with reality.

Back when we sold our house, my wife an I were in awe at the other houses in our neighborhood. Every house was identical, save for a window or two over the front door, it was a real cookie cutter neighborhood. Great starter homes though.

Our house was the first (and only in the last 6 months!) to sell. Our secret was that we priced our house at fair market value. There were 7 other homes for sale at the time our sold. Each one of them was asking a price that was the going rate - 6-12 months earlier! They were out of touch with the market place. I can understand that, but I never did understand what realtor in his right mind would take a client that was going to ignore reality and ultimately bring down the realtor’s sales statistics.

Eventually, even these stubborn and fanciful sellers face reality and lower their prices (usually much lower than where they could have started).

That’s what’s happening in Vegas, Phoenix and San Diego where home sales are up 10% and 90% respectively.

Eventually the prices will bottom out, sales will level off and prices will begin to rise again.

Also, remember that real estate is  local, even in the post-bubble era. The part of the country where I live never saw the outrageous hyper-inflation of housing prices, and the median home price has gone up 3% over the past year.

Whether you’re a buyer or a seller, you must know your market.

Bookmark and Share
Related Posts Related Websites
Category: Home Selling, Real Estate
Tags: >

Comments

One Response to “Don’t Look Now, but Home Sales are Rising!”

  1. Lambros Estate
    January 29th, 2009 @ 11:52 am

    One of the best perks of real estate investing is cash flow investing. It is best to invest in homes.

Leave a Reply





  • Search

  • Get Updates

    Subscribe in NewsGator Online
    Subscribe in Bloglines
    Add to Technorati Favorites

  • Recent Comments

  • Contact

    If comments aren't enough, feel free to contact me at:

    Join me on FaceBook

    Technorati Profile
    Blogs That Follow

  • Recent Tweets

    What I've been up to:
      follow me on Twitter
    • Frugal Hackers badgeMoney Hackers Network
      RSSMountain RSS Directory On our way to 1,000,000 rss feeds - millionrss.com
      Investing Blog Directory RSS Search Blogged.com hihera.com Blog directory

    • Tags

    • Disclaimer

      The information and opinions provided on this site do not constitute professional advice. This blog is intended to provide general information only about the author's own personal financial journey. While all information shared here is believed to be accurate, the owner/operator of this website specifically disclaims all warranties expressed, implied or statutory, regarding the accuracy, timeliness, and/or completeness of the information contained herein. You are advised to discuss your specific requirements with an independent financial adviser. All posts are © 2008-2011, Simple Debt Free Finance.

    • Unique visits since 2008:

    • ss_blog_claim=f34d742cbb91cfd8bb6b4f0e010113be ss_blog_claim=f34d742cbb91cfd8bb6b4f0e010113be

    • Useful Links: