This week, local real estate company Intracoastal Realty invited a national residential real estate expert to share his projections for the market at the company’s annual awards breakfast event.
This was New York-based speaker Steve Harney’s fourth year to present to Intracoastal Realty. About 250 agents and staff attended the event.
“When you have a real estate market as volatile and challenging as this one is, we want our agents to be loaded with the best information they can get,” said Jim Wallace, president of Intracoastal Realty.
From listening to projections made by Bank of America, Fannie Mae and Wells Fargo, Harney predicts a flood in the market of distressed properties nationwide in the second quarter of this year. As a result, home prices will drop by 5 to 8 percent in this market and will not return to today’s pricing until the end of the year, he said.
“[Moreover] we won’t see appreciation from today’s value until we move into 2012,” he said.
More inventory means more competition among sellers, which will further emphasize the importance of pricing when selling a home. Harney distinguishes between a competitively priced home and one that has a compelling price.
“A house that is priced at a compelling price, when a buyer walks out, he doesn’t say what other houses do you have to show me, he asks are there any other couples who are about to see this house,” he said.
But, price is not necessarily a buyer’s only concern. He pointed out that while price is a seller’s primary concern, monthly cost is a buyer’s main concern.
Real estate agents can educate their buyers that the low interest rates make now a good time to buy.
“If prices are falling but interest rates are going up, waiting might wind up costing you money rather than saving you money,” he said.
In terms of lessons learned from real estate market boom and subsequent crash, Wallace, who founded Intracoastal Realty here in 1976 said, “I guess if you learn something from that is next time when you see things move up that quickly, maybe pulling back and being a little more cautious would be prudent.”
YMCA Eyes Growth With Plans For New, Expanded Facilities
Emma Dill
-
Apr 23, 2024
|
|
Burns, Redenbaugh Promoted At Coastal Horizons
Staff Reports
-
Apr 23, 2024
|
|
Cold Storage Developer Sets Near-port Facility Completion Date
Audrey Elsberry
-
Apr 24, 2024
|
|
Wilmington Financial Firm Transitions To Wells Fargo's Independent Brokerage Arm
Audrey Elsberry
-
Apr 24, 2024
|
|
Krug Joins Infinity Acupuncture
Staff Reports
-
Apr 23, 2024
|
Lydia Thomas, program manager for the Center for Innovation and Entrepreneurship at UNCW, shares her top info and tech picks....
W.R. Rayson is a family-owned manufacturer and converter of disposable paper products used in the dental, medical laboratory and beauty indu...
“Our little town, especially the mainland area, is growing by leaps and bounds. So having somewhere else besides the beach for kids to go an...
The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.