One could get dizzy looking at the daily headlines pertaining to home prices. One report says prices are heading up and the next day, another says they are still falling. Here are two recent examples:
National Association of Realtors Chief Economist Lawrence Yun addressed the issue at the National Association of Real Estate Editors conference in Denver:
“This time next year, there could be a 10% price appreciation. I would not be surprised to see that.”
At the same time, Gary Schilling, president of A. Gary Shilling & Co., has been very outspoken about his belief that prices will continue to fall:
“Excess inventories are the mortal enemy of prices…I'm looking for another 20% decline and that is what it would take to bring them back to the long-term averages.”
The vast difference in what two experts believe causes confusion for both buyers and sellers. This uncertainty can create doubt as to whether or not they should act now. It is the real estate professional’s job to create clarity when it comes to future home prices. But how?
You must take into consideration three things in order to help determine where prices are headed:
- The months’ supply of visible inventory (homes currently on the market
- The months’ supply of shadow inventory (distressed properties about to enter the market)
- What the majority of housing experts project for home prices going forward
With that information in hand, you can have an intelligent conversation about price with your buyers and sellers.
Tomorrow (Wednesday, August 15), at 2PM EST we will be presenting a FREE WEBINAR which will cover the three points above (visible inventory, shadow inventory and what over 100 leading experts in the country are projecting for home values over the next several years). Over 1,500 agents across the country have already reserved their seat for the webinar. You can too by visiting us here!!