Woooo! Hooo! Another year. 2012.

This is the part where I tell you everything is going t be great.  The real estate market is poised for a big comeback, home prices will stabilize and start to rise, Days on Market will start to get shorter and shorter. Now is the time to buy. Now is the time to sell.

You’ve heard it all before. More than once.

The 2012 Real Estate Outlook for the Maryland Suburbs of Washington, DC

Here’s the real deal.

No one knows for sure how the real estate market will go.  In fact, I just had a little bit of a, er, “discussion” with my financial advisor guy who pointed me to some reports from some very high powered analysts that indicate real estate is going to rebound.

As I mentioned to him (and I’ll mention here, now), for every Pollyanna that says the real estate market is going to see a recovery there are other Debbie Downer types that will give you equally logical reasons why we’re still in for a bit of a slog.  Bottom line: no one knows for sure.

Here is what is for sure:

• mortgage money will remain tight meaning it is still going to be very tough to get a mortgage
• those who can qualify for a mortgage will enjoy historically low interest rates which makes buying a house more affordable
• house prices will stay affordable. This is not to be confused with “low” or “a steal”. Yes, some foreclosed properties will be priced very attractively but they’ll also need a lot of repair. Better to try and buy a home from someone who has some equity in their home.
• Bank mediated — short sales and foreclosures — will continue to be a substantial part of the market and continue to put downward pressure on home prices. Remember, though, bank mediated means the banks (whoever holds the mortgage) needs to be involved in the sale. This is not really an optimal situation. It also means the house you buy is in “as is” condition and you may need to sink money into repairs.
• Home sellers with equity in their home will find that they will be able to sell their homes more quickly assuming they can price their homes competitively. Unfortunately, this means competitively to the bank mediated homes.

Don’t Try To ‘Time’ The Real Estate Market

The idea is that if you’re thinking of buying or selling a home it is best not to try and “time the market”. It doesn’t matter if you wait until Spring (see this blog post about a quick December sale). It doesn’t matter if you want to wait until prices drop or mortgage interest rates drop (if you’re in a buying mood). It doesn’t matter if you think the market will turn around.

At this point, flipping a coin would be a great way to decide.

Home ownership is a good thing for a lot of different reasons. People will continue t buy and sell houses in any market at any time of the year and waiting may be the absolute worst thing you can do.

Need more information before you make a big decision? 
Send me an e-mail or give me a ring at 240-417-9100