Should you move now?

We've noticed at Bennett and Dean Real Estate that some homes are moving very fast (2 or 3 days) while others wallow in the marketplace for as much as 2 years.

Currently it's all about price (and somewhat about location (rarity=demand) but it's mostly about price range. Anything priced to sell below $220k (even better under $200k) has a good chance of selling quickly, assuming it has no problems that can't be resolved (such as a dump next door). And the higher priced homes (over $500k) that are also well priced, also without problems. The range that is hurting the most is the middle. That second home purchase where the sellers either want to move up or downsize. Surprisingly, there isn't much to look at in that range. Because, if you have a house to sell before you can buy the new one, you may be worried that yours won't sell for what you need. So, if you don't HAVE to move, you're sitting still. Remember though, if you're moving up, and you have to take, for example, a 10% "hit" on your $300k home you'll also be saving 10% on the $450k one. Do the math and you'll see that you "net $$15k in the trade.

This doesn't work so well when you're moving in the other direction (to a lower priced property).

So how is this going to turn around?

I believe that the $8000 tax credit for first time home buyers will start to deplete the inventory of first time homes. As they sell, those sellers will likely "move up". And prices will stabilize when there is more activity. Sort of a "bottom up" effect.

Watch future postings for updates about my theory...