I personally see this as a positive as the current capitulation in the market will hopefully mean a quicker trek to the bottom and should help drive buyers waiting on the sidelines back into this market. I also feel like these stats finally show what I think many people have felt out in the market for quite some time…
Due to our seasonal nature in Minnesota real estate I still think we won’t see a bottom until Q4 2008 but the acceleration downward makes it seem more possible that this market will find its bottom in 2008 and not limp slowly down the hill for years to come. Add to that the plan the 6 banks are putting forward to renegotiate loans already in default and I sense that this market is finally starting to make steps that will lead to a definite bottom in the future.
It’s impossible to time the market bottom and with interest rates still near all-time lows it isn’t a bad time to make a move up to a more expensive home or to buy a first home. Prices may fall further but if interest rates move higher on inflation fears, any additional decrease in sales prices may be erased by equivalent or greater increases in interest rates.
If you’re wondering if now is a good time to buy for your situation, feel free to call or email me to discuss your situation.