Have We Hit Bottom Yet?

While the national media keeps droning on and on about the real estate foreclosure crisis, there are some positive signs that we may be close to the "bottom of the market" essential for a turnaround!

According to Lawrence Yun, chief economist for the National Association of Realtors, home sales have stabilized over the last seven months and are expected to increase over the rest of 2008!

Pricing should also improve over the next few months. Cities that have performed steadily over the past few years (like Northeast Ohio) are likely to experience home price gains.

Realtors have reported that buyer traffic is increasing, while seller traffic is moderating, which will help with the supply of homes available nationwide and the home buyer tax credit that passed the House and Senate may help buyers make the decision to buy now!

Another positive sign is that the Pending Home Sales Index, which tracks housing contract activity is starting to climb after 5 months of decline!

Pricing still remains key to selling homes. If your home is currently on the market or you're thinking about selling, examine your pricing strategy. If you've been on the market more than a month and your activity is not meeting your expectations, you may need a price adjustment. I've been counseling my seller's to price their homes at the lowest price their willing to take, with no room to negotiate. That way, they'll know quickly as to if the market will support the price. No showings and/or no offers means that the market doesn't currently support their price, and they may need to look for other options! Following this strategy from the beginning of the listing will alleviate a lot of unrealistic expectations.