Whew!! I made it through another week of real estate. I have been selling homes for folks for the last 14 years, and there has never been a time like this. The market is flexing more than Arnold Schwarzenegger in front of a mirror! First the A-bombs of Merrill Lynch and Lehman Bros... then AIG, then the bailout... what's next? McDonald's going out of business??? (We are only talking about the last 7 days mind you...) It is difficult to stay on top of all of this.
So, what is the bottom line? First, let me say that my office now has 17% of the residential, single-family sales in the San Antonio MLS, according to the MLS statistics. So, even though the market is down, we are moving up. That's the god news for my buyers and sellers. The San Antonio market is down 21% from last year same month. So, the market is definitely down... no one can claim we aren't feeling it. The odd thing is average sales prices are up, though units are down. I think what is happening is that a lot of the remaining qualified buyers are buying bigger homes to maximize on their profits when the home prices go back up.. which they will ... some day... Also, a lot of higher end homes have hit the market, many of them selling, but selling at a loss. In other words, when the market gets tough, those who own the most expensive real estate feel it first. Let's face it, if you loose your job and your overhead is 8000/month, it takes a lot less time to get in serious trouble than when your monthly nut is $1000. Either way, losing a job draws air rapidly, but that would explain the abundance of homes over $500K in our MLS.
Wow! Too much to analyze. It is just too much. If you go searching the web, you will find plenty of opinions on all sides of the issues. So, my advice? If you want to buy a home more than 30% more expensive than your current home, this is a great market. Sure, you will sell for a little less, but you will more than make it up on the buy. There are a lot of great deal in the market over $400,000. (Before you pull the pin, let me do a CMA on your current home and do an analysis on the potential gains... then you'll go in with your eyes open wide.) If you don't need to sell - stay put. It may take a year, or even two, but it will get better. If you must sell, or if you are in trouble - call me right away. I'll give you all the information you need to make the best decision you can for you and yours...
As always though, Real Estate is still the safest place for your money long term. If you look at the history of home prices, overall, they always go up... I guess it boils down to timing.
Have a Real great day!
