Looking at the homes on the market, we wonder, how is this thing going to turn around?  Insight can be gained by one question.  Where do I spend the bulk of my family dollar, at Costco, discount stores or, my corner grocery store?  It’s clear that the discount stores win.

                             

          How does this habit of going to the place with the cheapest prices apply to the sale of homes?  When we make the largest purchase in our lives, we want to receive the most value for the least amount of money.  Enter the current depressed housing market.  With so many distressed homes on the market at 30% to 50% below the former market, values are in abundance with interest rates lower than they have ever been.  For the market to climb back to a semblance of its former self, the distressed properties will have to be sold.

           It is estimated that this will take at least 2 to 3 years.  Several other things will have  to happen as well.  Employment will have to increase appreciably. Home inventories will have to go down by selling the distressed properties and home loans will have to become easier to obtain.

           A ray of light coming from our vantage point is that the above requirements are beginning to emerge.  We hope when the stimulus package is withdrawn that the market will have enough momentum to continue growing on its own.

 Don Schaller

Broker Owner

Schaller Family Realtors

Dickson Realty Truckee

Alltruckeehomes.com