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Housing Crisis Over in 2012

Is the Housing Crisis finally seeing light at the end of the tunnel?  Based on our own experience and observations as well as reports from major lending institutions, the answer seems to be YES – FINALLY!

I have been cautiously optimistic for quite some time waiting for good news and predictions to prove true only to be disappointed by the “reality” of the market to follow suit with credible evidence. Recently, that has changed, and there have been subtle signs that have become more evident over the past few months.

First, home inventories are down; especially distressed properties in higher end neighborhoods located in prime school districts. We have seen a substantial reduction in both short sales as well as foreclosure properties compared to the last few years and a stabilization in home prices as well.

Unlike activity from as recent as last year, foreclosures are flying off the books and I’ve even witnessed a few healthy bidding wars on several prime properties. This has been especially evident with newer construction that builders have been unable to unload, complete with newer amenities and upgrades not often found at these prices.

Additionally, short sales, while still representing a healthy percentage of the homes available – seem to be spending less time on the market with sales prices creeping up ever so slightly. I’ve been predicting that once prices fell to the insane point of dropping below the cost to build, the market would eventually stabilize and self correct. This seems to be playing out exactly as expected. If you were one of the lucky buyers to take advantage of perhaps a once in a lifetime opportunity – Congratulations!

Additionally, banks and lenders have begun to relax some of the elevated credit requirements put in place over the past several years as well as introduced and reintroduced some mortgage products and programs making it easier for prospective buyers to enter the market place once again. Although I remain cautiously optimistic, it’s important to note that many of my observations are localized to specific areas and communities. We haven’t scratched the surface yet of returning to the good old days. The unemployment situation and economy as as whole must continue to improve but good news – any good news is a welcome relief. This also brings up a very good point as well. It’s always important to find out what is happening in your local market vs listening to information on the national news that has nothing to do with where you live, work and play.  Remember – the real estate market is always local, city to city, town to town, neighborhood to neighborhood.

My advice? – If you’re a buyer and have been sitting on the fence for some time – It’s time to start evaluating your motivation to act sooner than later. They’ll still be plenty of good buys available, but they’ll be fewer in numbers and the competition for those will be greater.  There is an abundant amount of buyers like yourself who have been sitting on the sidelines for quite some time just waiting for the right moment. Once this becomes more apparent, activity will increase dramatically. If you’re a seller – especially if you’re not in a distressed situation, good news is on the horizon.

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Atlanta Dream Living Farkas & Associates Virtual Properties Realty Equal Housing Opportunity Realtor

Virtual Properties Realty | FARKAS & Associates Realty Group | Phone: (678) 442-1509

6650 Sugarloaf Parkway, Suite 700, Duluth, GA 30097

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