In light of the credit crunch and concerns over the economy, the
question most Pickens and Cherokee county home buyers as well as most sellers are asking these days, is "when will prices
in this market reach bottom"?
Well, in the last 12 months, the answer to this question depended on who you
asked. All the economist and financial gurus' seemed to have a different answer. However in the past few weeks many of
those with a gloomy forcast for the near future are beginning to lean more toward the positive side. Their answers are now
beginning to sound like a general theme; and that theme is positive. The cheif economist for the National Association of Realtors
said in an interview this week. " indications are that most markets may reach bottom and begin recovery in the last half
of 2008". Another good indicator of which way the market is moving, is the activity of real estate investors. The fundamentals
of real estate investing are much the same as that of investing in the stock market; where the strategy is buy low and sell
high. I'm currently seeing an increase in the buying activity of investors here in our area. This may very well mean that
they also believe that the bottom is near. The fact of the matter is, evrery market is local and prices can vary greatly in
area's just a stones throw away from each other. No one knows without a shadow of a doubt exactly when the market will
reach bottom in any particular area. However I personally believe that when you ad all the factors above as well as many others
I'm seeing together and look at the big picture every indication is that we are near the bottom on the national level.
So, what does that mean for home buyers and sellers here in the Pickens and Cherokee county area?
The stats show that Cherokee and Pickens are currently very different markets. In Pickens the mediun
sale price for single family homes in April of 2007 was $199,000 The mediun price in April of 2008 was $194,000. This equals
a 2.5% decline in one year and this is 4% below 2005 prices. Cherokee County prices on the other hand, are down 7% from april
2007. However this is in line with 2005 prices.
So assuming that the predictions for markets to improve in late
2008 come true, Its time for buyers in both counties to move. Due to stimulous efforts by the fed and Busch adminastration,
Interest rates are extremely low now, and for buyers who need FHA financing, the terms are looser than ever before. Not to
mention the fact that buyers are not likely to see prices this low again in a their lifetime.
For those Cherokee
County sellers who want to sell but don't need to sell now, You may very well see prices back above the 2005 level by
early 2009. For sellers who do need to sell now, depending on the area of location, your home should be worth the same as
it was in 2005; however unless you have the right marketing strategy it could take you up to 1 year to sell.
For
Pickens selllers, I think it will be quite some time before most see prices back at the 2005 level but all is not lost.
Before you give up and throw in the towel. It's not a hopeless situation for sellers in either Pickens or Cherokee.
There are ways to get a much better price for your home, with the right marketing strategy. Or If your situation or equity
allows, you may want to consider using terms such as partial or full owner financing or lease / purchase which will put you
in a position to get a premium price and open up a much larger market to you.
Please keep in mind that this is
the opinion of one real estate agent formed from his interpretation of statistics and news. Buying or selling a home is a
big decision and should be made based on your own circumstances, needs and research of the market in the particular area of
the county that your home is located.
