WSJ – Seizing the Upside of a Down Market
Thursday, July 16th, 2009Buyers Are Coming Back Into the Market— and Getting Great Deals
Whether the real estate market is in turnaround is still a question, but what’s not up for debate is that some market insiders are detecting encouraging signs. One real estate agency in Savannah, GA, reports a healthier first quarter than a year ago. A suburban Detroit broker is seeing an uptick in sales volume. Even hard-hit areas of Florida, Nevada, Arizona and California are showing signs of life. In some cities, home inventory is less than half of what it was 15 months ago, and homeowners are entertaining multiple offers.
Low interest rates and attractive housing prices have lured some people back in the market. What’s holding other qualified buyers back? It isn’t financial instability or lack of liquidity. Call it market angst.
Fear of Commitment?
Celia Dunn of Celia Dunn Sotheby’s International Realty says, “fear of the unknown” is keeping some people from taking advantage of dramatic price reductions in her two markets of Savannah, GA, and Bluffton, SC. “They’re still hesitant to commit,” she laments. Yet, first quarter 2009 sales topped those of 2008, and her office is closing on multiple homes every week. Dunn represents a mix of primary and second-home properties in historic districts, waterfront areas and on islands. For those ready to dip their toes back in the water, it’s a rosy picture. A home in the Savannah Historic District that originally listed for $3.1 million just sold for $1 million. A private island off the South Carolina coast priced at $15 million is down to $10.5 million. “People can get so much more for so much less,” Dunn says.