Is the Real Estate Implosion Finally Over?

Published by julia | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate, Shout Outs

Is the Real Estate Implosion Finally Over?

This is the question that many real estate agent are currently asking themselves.  Is the real estate implosion finally over and will sales begin to rise in a way that profitability will be able to be restored and maintained in the future years?  According to real estate analysts, the implosion is not yet over and all real estate agents can expect to see more dropping prices in the next 12 months. This is especially true in areas of the United States where foreclosures are hitting the market the hardest.

What about foreclosures?

With more than 85,000 real estate foreclosures reported in the month of October 2008 alone, real estate analysts are not saying any rebounds can be expected in foreclosures in the coming months.  The majority of the markets hit the hardest are not expected to see rock bottom until well into the year 2010. Areas hit the hardest by the downswing tend to fall on the West Coast. Stockton, CA, for instance, is seeing home values falling be 50% since 2006. For these homes owners, the equity in their homes is gone and new home owners may soon hear from their banks regarding their mortgage now being more than the value of the home.

What does this say for the real estate agent?

For the real estate agent, the practice is far from dead. What is learned during an economic downswing can prove to be more beneficial than any sales in the upswing. Yes, there is more money to be made when the market is booming, but the knowledge gained from worked harder, stronger and longer on that sale today, will prove to increase sales when the economic crisis is over and the real estate boom rises again.