March 02, 2009

FAITH, HOPE, and... CLARITY

Posted to Doug McCullough, The Broker's View, The Latest on Sales

I read last week that the National Association of REALTORS® said sales of existing homes fell approximately 5%; the weakest showing since July 1997.

We’ve seen the median sales price plunge to approximately $170,000, down just about 15% from almost $200,000 a year earlier. It’s been the lowest price since March 2003 and the second largest drop on record, according to everything we read and hear lately.

Foreclosures are dominating the market - especially in distressed states like Florida, Arizona, Nevada and California. The REALTORS® group is estimating that about 45% of sales nationwide are foreclosures or other distressed property sales.

If you’re a glass is half full kind of person, that’s great news for buyers, who are paying the most affordable prices in years.

If we’re filling the glass completely, the combination of low interest rates and the $8,000 first-time home buyer tax credit, (tucked somewhere in the zillion page economic stimulus plan signed by President Barack Obama this month), makes for a killer combination.

OK, great…we’re on our way:

We have FAITH that the market will feel the boost with the tax credit - maybe by late spring or early summer.

We have HOPE that the government will resuscitate the housing market.

Now all we need is a lot more CLARITY on how the rest of the stimulus plan will get us out of this economic slump!

And, speaking of CLARITY, one thing I am crystal clear on is the property in East Hampton on Clamshell. There’s never been a better time to indulge your weakness for the finer things in life. Prepare to renew your FAITH in property investments and know that HOPE will definitely help float your kayak on Hands Creek, directly accessible from the backyard of this incredible home! See photos on my listing and shop for your swim trunks!

Until next time…WDM

Posted By: Doug McCullough