Everything is relative to where you began. Yes, homes values have decreased in the seacoast area, but relative to 5 years ago when prices were unrealistically high. If you purchased in the last downturn when I began in real estate in 1987, you are probably in a good position to make a profit on a sale in this market. That is if you have not re-mortgaged your house to pay health care expenses, your child's education ect. I believe buyers were more frugal in their purchasing of homes in the late 1980's and early 1990's. In the latter 1990's however, we saw many young buyers, with dual incomes insisting on expensive new construction, pushing their mortgage qualifications to the limit. I believe the foreclosures in this area are not due so much in part to the nation's sub-prime lending crises as to the overspending on buyers parts in the beginning. Not taking into account what would happen if their incomes dropped, that they do not need 2 new vehicles or the costs of living would increase within their futures. Since then, local incomes have not increased, the cost of health care, gas, ect has dramatically increased, and some of those same buyers are now down to one income.
Every area in the nation is dealing with their own market trends. Homes are and will continue to take longer to sell, at least for the near future. It is therefore important to market your home that is based on the current market value not what may have been 5 years ago. Homes that are overpriced will linger till the buyers and real estate agents think that surely something other than price must be wrong with the home. It would be better to wait out the next market, till price trends change than to have a home on the market for a year. The longer a home is on the market, the less likely it will sell, even with continued price reductions. Price it right from the start.
Every area in the nation is dealing with their own market trends. Homes are and will continue to take longer to sell, at least for the near future. It is therefore important to market your home that is based on the current market value not what may have been 5 years ago. Homes that are overpriced will linger till the buyers and real estate agents think that surely something other than price must be wrong with the home. It would be better to wait out the next market, till price trends change than to have a home on the market for a year. The longer a home is on the market, the less likely it will sell, even with continued price reductions. Price it right from the start.
