How's the real estate market?

One of the most frequent questions I get these days is “How’s the real estate market?” It’s almost like walking down the street and having someone say “Hi, how are you doing?” I suppose the most accurate answer is, “it depends”. What is good for one person isn’t necessarily good for another. Are you interested in buying a home for your family that you are going to live in for an extended period, or are you considering purchasing a property to quickly sell for a profit? Maybe, you are asking this from the perspective of the majority of my clients who are adding their homes to the growing inventory of available homes for sale in our county. Again, it depends on your overall strategy, goals and plans.

Personally, I like the real estate market we are in. Maybe not as well as the one we just came from like in 2005 where values were climbing vertically and homes were selling sometimes in a matter of hours. However, I believe that real estate markets need natural corrections in order for newcomers to be able to get in on home ownership and for existing home owners to be able to move up to a nicer home.

Statistically, the number of homes sold through the local Multiple Listing Service (actual closings) for the first quarter of 2008 is down by about 35% from the first quarter of 2007. As of tonight, April 20, 2008 at 10:47pm, while I am writing this there are 3,422 available active homes, condos and manufactured homes on the market without an offer on them in the Multiple Listing Service for Spokane County, if you add another 10% for all the for sale by owners that brings the rounded number 3,750. According to a recent survey conducted by the local MLS this is about a 20% increase in inventory versus last year.

It isn’t time to panic. It is time for patience. As many of you know, we have just come through what is likely the longest winter that I have ever or (hopefully) will ever experience. Add to the equation the reduction in the number and type of lending programs available to buyers and it is highly likely that the number of real estate transactions in our county will drop in 2008 versus 2007.

Clearly, if you are in the real estate market as a seller or a buyer or you intend to enter the market, you want to do so with a clear well-defined plan. There are a lot of people whether they are real estate agents, lenders, or the media who are either spinning their version of the market, sensationalizing the market, or just telling you what they think you want to hear.

I am here to help you decipher the rumors from the truth and assist you in making the right financial decisions. Please, post your sincere questions or comments to this blog. I welcome you to this discussion forum.

Ron McIntire
Top 15 Realtor, Spokane County 2007
Owner Assist Realty
Co-Founder, SpokaneByOwner.com
Licensed Loan Originator – Acceptance Capital