Will the Real Estate Market Follow the Stock Market?
The Stock Market has experienced dramatic swings in value during the past four years. After reaching a high of approximately 14,000 in 2007, values plummeted to about 6,500 in 2009. During the last 24 months, the Dow has regained most of the value it had lost. It wasn’t obvious that the bottom had been reached until there had been a significant increase in value. Most experts didn’t expect to rebound so quickly.
Is it possible the Real Estate Market will follow suit? The answer to that question won’t be evident until we have seen a significant reduction in inventory and a rebound in prices. Waiting until it’s obvious we are trending upward doesn’t work with Real Estate. Buyers must remember that as real estate prices increase and inventory levels drop, the best properties are sold and the selection becomes limited.
Buyers have been waiting so long to purchase, that waiting has become an unproductive habit. Buyers should reverse this trend and buy now, before everyone else, to get the best price and selection.