Looking for a steal? Not today!

Real Estate is a funny thing, it goes up and down and most of the time no one really pays attention to it. That is unless your a Realtor, or your looking to buy or sell. But what causes this fluctuation of price? Before I got my license I thought that it was just made up. I can assure you- it's not. Real Estate prices are set by the market. The market is determined by the law of supply and demand. Anyone involved in any sort of business knows that when a tangible good is desirable, the prices for that good goes up because it is in short supply. When that good is not so desireable anymore, the prices go down because there is a lot of inventory that needs to be sold.

In 2006-2007, the real estate market was at it's highest. There were a lot of seller's and not a lot of buyers. The prices for homes were (as we would say today) astronomical. Interest rates were higher, but people were buying. I bought a 1BR, 1BA condo in Mays Landing for $130,000 at a 6.25% interest rate, AND that was a good buy! At that time, it was a "let's make a deal" situation. Seller's always want to leave "cushion" room so that they can leave room for negotiating. You had buyers fighting over homes with highest and best offers. It was a sellers market.

In 2008 everything changed. The economy took a crap, and the housing market fell. People started to lose their jobs, their adjustable rate mortgages kicked in and they weren't able to afford their homes anymore. Foreclosures were on every corner, and you could get them dirt cheap. This is the market I started selling in. I don't know what it was like before, and my description of the boom above could be a little off. My purpose of telling you all this is because there is so much misconception out there, and it's time someone sets it straight.

When I started selling, I was told to list my seller's at market value- that is what has most recently sold in the last 3 months in your area. That tells you what buyers are willing to spend for a home just like yours. I used my judgement, and listed about 6 homes in my first few months. My very first listing sold in 30 days. It was priced right! Buyer came in relatively close to asking price, and my seller's were buying something bigger. It was a match made in heaven.

In today's market, seller's aren't leaving negotiating room (especially if they are listed with a good realtor). They are pricing their homes realistically to sell. Buyers are recognizing this, and they are putting in offers close to, or even in some cases, above asking price. It's even been in my experience that there are bidding wars for properties!

Most of the cheap cheap properties are gone, and now your looking at homes in which seller's have taken the time to make them ready for sale. If you think you are going to steal a home because there is a preconceived notion that the seller "has to sell," your looking for a needle in a haystack. You may miss out on the best time to buy. In some cases, a little elbow grease is all you need to bring your property value up. In 5-10 years when your ready to sell, if you took advantage of today's market you will make money. No one has a crystal ball to tell you what will happen in the future, but if you follow history there is always a shift in the real estate market.

There are other factors that have effected the real estate market. Most recently, our market in Atlantic County has pretty much stabalized. Home sales have gone through the roof with the tax credit, consumer confidence is on the rise now that most of the lay offs have come to a halt, and overall economic outlook is starting to show some light. We are not out of the woods yet, and we have some recovery to do, but you can start to see the light at the end of the tunnel.

If you want to know how much your home is worth in today's market, email me at abeich1219@gmail.com with your propery address, full name and contact information. There is no obligation to list, my theory is knowledge is power.

For more information on the real estate market in your area, visit http://www.realtor.org/