1. There is a nice selection of homes to choose from right now.
2. Sellers are very willing to negotiate on price, terms and perks.
3. Interest rates are still at a historical low and banks have money to lend.

Despite the above conditions, many buyers are waiting for the “bottom of the market” before investing in their home. Below is an explanation of the “bottom of the market” and how it will affect your buying experience.

The following graph represents the housing market. The left side of the V represents the market going down, the right side represents the market going up, and of course the bottom of the V represents the bottom of the housing market.

Assuming that the current housing market was at the point of the red arrow on the left, we would say that the market is going towards the bottom. The problem with waiting for the bottom is that we won’t know that the housing market has hit the bottom until prices start to go back up. It will be difficult to be sure that the market has hit bottom for a few months. It’s not a sudden shift, it is a slower more gradual shift.

You’ll be able to tell that the market has turned when prices reach the point marked by the blue arrow. There is not much difference in the price between the point marked by the red arrow and the pint marked by the green arrow. But there is a major difference in the housing market…

If you buy a home on the left side of the graph, it is considered a buyer’s market. Your would be more likely to get concessions from a seller including price reductions, repairs, or maybe even personal property.

If you wait until the market turns and you buy on the upswing, you will be entering a seller’s market and you and every other buyer that has been waiting for the market to hit bottom may be bidding on the same house.

Guest submission by:
Ruby Grynberg of Salmon Bay Lending, Chief Loan Officer, (206) 789-8629

Posted by:
Lynn Robertson
Broker, YourSeattleHomeTeam.com
Direct (206)330-1213

YourSeattleHomeTeam.com