My New Blog

RISMEDIA recently made an interesting survey.  It found that 62% of homeowners believe that the housing crisis has not affected their home, and that their value actually increased or remained the same in the past year.  And 75% believed their home will increase in value or stay the same in the next six months.

Reality is that according to Zillow's second quarter Real Estate Market Reports, due to be released August 12, 77% of all homes in the U.S. decreased in value, 19% increased, and 5% remained the same.

I find this to be true in my work.  People are surprised that their home could possibly be valued less than they bought it for in 2005.  They almost get indignant and angry.  I can understand the frustration.  I don't like the idea that my home is now worth less either.  My biggest asset is loosing ground and that has never happened before.

Go to the following link to read more...

http://rismedia.com/wp/2008-08-06/the-majority-of-us-homeowners-thinks-their-home-is-insulated-from-the-housing-crisis/

This is the main reason people are unwilling to lower their prices to get the sales moving.  Inventories continue to rise and demand continues to fall.  This is true in Northwest Wisconsin.  The statistics bear this out in stark fashion.  Yet people are stuck on their price, hoping that if they hang in their long enough it will magically turn around.  It isn't, and not for a long time.  Real Estate is a function of supply and demand.  Even if the demand stays the same and supply increases prices will fall.  I don't see demand rising for some time.  Credit is tight, and underwriting guidelines are stiffer.  There are fewer buyers today that qualify due to the financial crisis.  There just aren't enough buyers to absorb all these homes in Northwest Wisconsin.  

So if you are a homeowner and you absolutely NEED to sell your home you need to seriously look at your price and do any maintenance and cosmetics to make your home appealing.  That's where I suggest getting a very honest appraisal of your home, and getting someone to look at your home as critically as possible to see anything that needs to be fixed, spruced up, or redecorated.  There are professionals that will come in an stage your home as well.  Now is not a time to have thin skin.   If you DON'T need to sell your home then you REALLY need to take it off the market so that those who really NEED to sell can.

This is certainly not a pleasant time.  But we'll weather it and learn from the mistakes of the past.