I received an email last night from one of my buyers.  It was 3 sentences long and titled “Market Conditions”.  Given the events of 9/29/08, my buyer was concerned as to what this meant now and what the future holds for real estate, here is my answer:

You have asked the million dollar, or should I say the 700 billion dollar question!

I believe it is safe to say the market is currently stalled and waiting to see what the end result will be.  Buyers are currently experiencing difficulty in securing financing if they are putting less than 20 % down as there are less companies willing or able to insure those loans.  I personally closed 2 transactions last week which involved local banks, so houses are still selling, and these lenders (though more cautious than before) were never risky players in the mortgage game.

Houses are selling!  The obvious values are still selling quickly…a 1500 square foot contemporary ranch closed in Griswold yesterday for $270,000 after only 11 days on market; a lovely colonial in Canterbury also closed yesterday for $395,000 with less than 30 days of marketing under its belt.  Both were in the 95% range of list to sell price.  (these are just 2 examples…there are many more)

As to the future, ugh, if I only knew!  But I will predict…some form of a “bail out” will be passed (today likely scared the living daylights out of everyone) and a new president is right behind, which usually ushers in more consumer confidence.  No matter what, everything I read indicates that we are likely in for a bumpy ride for the next 10 to 12 months.

For you, the buyer with no house to sell and funds to invest, this is likely a perfect market!  Only once before in nearly 24 years of doing this business have I seen such a market for buyers of real estate.

Invest in Real Estate!  It is clearly a safer long term bet.

The response to my email was:  Thank you for your response, I guess I will get off the ledge now.

Yes, please do!  This is a time for cooler heads….