Industrial News

Hopes of more buyers coming into the market as spring approaches have so far not materialized, although the statistics relate only to closed sales, so they are about six weeks old compared to the listings numbers. It will take a lot to turn the market round quickly, though, with almost five times as many homes being offered for sale now compared to a year ago.

Based on the latest figures, Hightower Realty (http://www.hightower-realty.com), one of the area's leading vacation home specialists, is now predicting a further substantial drop in prices before the market can start to level out. Eventually there will be fewer homes added to inventory, as sellers see no prospect of realizing an acceptable price in the short term, and this will be helped by more buyers coming in to the market to mop up some of the best deals.

But before this happens, we must expect more of the same. Prices have already dropped by close to 10% from their peak of last summer, and an eventual drop of 20% in home values is a real possibility now.

What does this mean to rental home owners who are thinking of selling? For owners who need to sell soon, it means moving very quickly, pricing very realistically, and using every trick in the book to get a sale quickly before prices fall further. If you think that you want to sell eventually, but there is no rush, you will almost certainly get a better price if you can wait for at least a year, better two years. The worst thing to do is to delay for a month or two, because there is now little doubt that average prices will be lower in the summer than they are now.

For buyers, of course, the latest statistics are much more comforting. Prices are already well below their peak, and there are some exceptional bargains where sellers are desperate to sell before things get worse. Now is the time to start looking seriously, although you don't have to rush, as there will still be plenty of homes to choose from for several months at least.

If you have any thoughts of buying into, or selling out of, the rental home market in the next few months, you need to get onto the mailing list for Hightower Realty's weekly newsletter, an excellent way to keep on top of the rapidly changing market conditions.