Home Buying in Today Spiraling Real Estate Market A few years before the Utah Home Search went down the toilet, I began to build a business working for banks doing quick-and-dirty valuations of properties that were being refinanced or that were headed into foreclosure. It started out slowly but has known grown to the point where I could do it full time if I so desired. The fallout from the financial crisis that has hit the US has been catastrophic for many families, and I've seen it day-in and day-out for well over a year. Areas of homes that used to sell for well over $600,000 are now selling for $400,000 or less. Banks are absorbing losses that are so substantial, is it any wonder that well established institutions like Washington Mutual and Lehman Brothers have gone belly up? Many of the homes that I evaluate were purchased by overly zealous investors that were looking to turn a quick profit. These homes have never even been lived in, and they are in the throes of foreclosure. Unfortunately, the big losers are the other families that purchased in these neighborhoods expecting to have a safe haven that would slowly appreciate over time. Now they are trapped. Realistically, only two options remain for many people: stay in the home because they are too upside down to sell, or let it go into foreclosure and start over once enough time has passed for them to repair their credit. Just to emphasize the downturn of today's market, let me reference some statistics from the residential market in Salt Lake County, Utah Homes for Sale Search In addition to the smaller sales figures, the average cost per square foot dropped from a high of $130 in June '07 to $106 per square foot in Nov '08 - a 16% decrease in value over the span of 18 months. As the final nail in the coffin, it appears that fewer than 1500 homes will be sold in Q4 of 2008. When compared to the current number of active properties in Salt Lake County, it appears things might get a little worse before they get better. However, for those who didn't get clipped by the market's downturn, there is a mountain of opportunity available. As more and more foreclosures properties have sold, many experts agree that a bottom for the current housing market in Utah is being created. Moving forward, that bottom will become the foundation of a slow, plodding, methodical housing market that will carry us into the future. Utah Houses for Sale by Owner is far from dead - you just have to know when to pull the trigger.So what do you do if you are currently in the market. Should you continue to wait for prices to fall further, or choose something now? While there is no way of knowing for sure, there are ways to hedge your bet. First off, be patient. New bank- owned properties are being listed on a daily basis, and they are all competing against each other for the small pool of available buyers. Banks do not want to Utah Homes for Sale by Owner- they are in the business of lending money and they want to get it back as quickly as possible. Therefore, their loss if your gain. Avoid getting into a bidding war, if you can. There will be other properties - I see 8-10 of them come across my desk every day. In short, be on the lookout for a bargain, and be patient enough for it to find you. Buyers in the Utah market have copious amount of leverage, and should use it to their full advantage.
Pages to are hidden for
"Home Buying in Today Spiraling Real Estate Market"Please download to view full document