The home purchase tax incentive and incredible home mortgage rates made a huge dent in Trinity’s housing inventory this year; and home prices took a step back from the edge of yet another precipice.
On the home selling side, two other trends made a big difference in our local markets. In the beginning, when home prices started and continued to decline, home sellers initially remained firm on their sale price.
Understandably so, selling a home is an emotional experience. When you put time and money into maintaining and beautifying something, you want a proportional gain. But as home sellers began to understand that it is the market that dictates price and adjusted accordingly, their homes starting selling and the inventory began decreasing.
Another key factor this year was the increase in professional representation. Homes for Sale by Owner, a popular alternative, have not fared well in this market. Besides the challenges of structuring contracts, the most difficult part of a real estate transaction for an unlicensed person is the lack of familiarity with the new legislation governing appraisals, the mandates of FHA and VA loans, and all the nuances of buyer qualification.
These areas have changed so dramatically, that just about anyone selling their home on their own without benefit of an experienced Realtor was, and still is, at a tremendous disadvantage.
Our lives and our market will return to normalcy, it is just a slow and steady rebound. Bottom line, the trend for 2010 is recovery, and buying and selling are back in style.