January 30th, 2008 12:02 AM by Manuel Couto, CRS, CRB
NOW what I wrote about several months ago has happened, and everthing is in the process of correcting itself. The market (real estate, sales, cars, stocks) is in constant state of flux. Supply and Demand... Affordability Index (I hear you, "Prices have to drop". I ask Why?)
Prices have steadily dropped in the NJ metro area for the last 18 months. I know, that's longer than the Press has mentioned but ask any Realtor(R) and they'll tell you the same thing.
Prices Down, Inventory UP, Negotiability UP, Interest rates DOWN. What does that mean to you? It means that THIS may be the best time since the prices started to inch up 10 years ago to buy a home. We all know that inflation and the need for housing constantly increases as more and more homes are needed for our growing population. Even with unemployement inching up, America is still the GREATEST country on earth. Why else would so many be against us? Why else are we here? Why else did our parents and grandparents come to this country?
And people say prices have to drop still further? Did you notice that the reports for the most depressed markets are taking place in 5 states. NOT NJ, and NOT NY (well, maybe some areas). Go try to buy your beach front home at the discounted 70% price drop you read about in the papers. Go try to buy a foreclosure or a short sale at the 50% discount (sounds more like Urban Legends to me).
Look,nothing is written in stone on pricing, marketing or selling a home, but the one thing I know is that prices do go UP and down. It's a normal cycle in any supply and demand market. Free market enterprise.
Don't believe me? Heck, Manhatten was sold for about 24 bucks. Go try that in todays market.
Email me Homes@MCouto.com